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The Internet and World Wide Web

Chapter 2: The Internet and World Wide Web


  1. Discuss how the Internet works
  2. Understand ways to access the Internet
  3. Identify a URL
  4. Search for information on the Web
  5. Describe the types of Web pages
  6. Recognize how Web pages use graphics, animation, audio, video, and virtual reality
  7. Define Webcasting
  8. Describe the uses of electronic commerce (e-commerce)
  9. Explain how e-mail, FTP, newsgroups and message boards, mailing lists, chat rooms, and instant messaging work
  10. Identify the rules of netiquette

This chapter introduces one of the most significant innovations of the past half century – the Internet. The Internet is defined, and the history of the Internet is detailed. You discover how the Internet works and learn about Internet service providers and online services, connecting to the Internet, how data travels the Internet, and Internet addresses. The World Wide Web, search engines, and multimedia on the Web are explained. You become familiar with Webcasting, electronic commerce, Web publishing, and other Internet services including e-mail, FTP, Telnet, newsgroups, mailing lists, chat rooms, and instant messaging. Finally, netiquette, the Internet code of acceptable behavior by users, is described.

1 | Discuss How The Internet Works

The Internet is a worldwide collection of networks that links millions of businesses, government offices, educational institutions, and individuals. Data is transferred over the Internet using servers, which are computers that manage network resources and provide centralized storage areas, and clients, which are computers that can access the contents of the storage areas. The data travels over communications lines. Each computer or device on a communications line has a numeric address called an IP (Internet protocol) address, the text version of which is called a domain name. Every time you specify a domain name, a DNS (domain name system) server translates the domain name into its associated IP address, so data can route to the correct computer.

2 | Understand Ways To Access The Internet

You can access the Internet through an Internet service provider, an online service provider, or a wireless service provider. An Internet service provider (ISP) provides temporary Internet connections to individuals and companies. An online service provider (OSP) also supplies Internet access, in addition to a variety of special content and services. A wireless service provider (WSP) provides wireless Internet access to users with wireless modems or Web-enabled handheld computers or devices.

Employees and students often connect to the Internet through a business or school network that connects to a service provider. For home or small business users, dial-up access provides an easy and inexpensive way to connect to the Internet. With dial-up access, you use a computer, a modem, and a regular telephone line to dial into an ISP or OSP. Some home and small business users opt for newer, high-speed technologies. DSL (digital subscriber line) provides high-speed connections over a regular copper telephone line. A cable modem provides high-speed Internet connections through a cable television network.

3 | Identify A URL

The most widely used service on the Internet is the World Wide Web. The World Wide Web (WWW or Web) consists of a worldwide collection of electronic documents called Web pages. A browser is a software program used to access and view Web pages. Each Web page has a unique address, called a URL (Uniform Resource Locator), that tells a browser where to locate the Web page. A URL consists of a protocol, domain name, and sometimes the path to a specific Web page or location on a Web page. Most URLs begin with http://, which stands for hypertext transfer protocol, the communications standard that enables pages to transfer on the Web.

4 | Search For Information On The Web

A search engine is a software program you can use to find Web sites, Web pages, and Internet files. To find a Web page or pages, you enter a relevant word or phrase, called search text or keywords, in the search engine’s text box. Many search engines then use a program called a spider to read pages on Web sites and create a list of pages that contain the keywords. Any Web page that is listed as the result of the search is called a hit. Each hit is a link that can be clicked to display the associated Web site or Web page.

5 | Describe The Types Of Web Pages

There are six basic types of Web pages. An advocacy Web page contains content that describes a cause, opinion, or idea. A business/marketing Web page contains content that promotes or sells products or services. An informational Web page contains factual information. A news Web page contains newsworthy material including stories and articles relating to current events, life, money, sports, and the weather. A portal Web page offers a variety of Internet services from a single, convenient location. A personal Web page is maintained by a private individual who normally is not associated with any organization.

6 | Recognize How Web Pages Use Graphics, Animation, Audio, Video, And Virtual Reality

Many exciting Web pages use multimedia. Multimedia refers to any application that integrates text with one of the following elements: graphics, sound, video, virtual reality, or other media elements.

A graphic is a digital representation of information such as a drawing, chart, or photograph. Two common file formats for graphical images on the Web are JPEG (Joint Photographic Experts Group) and GIF (Graphics Interchange Format), which use compression techniques to reduce the size of graphics files and thus speed downloading.

Animation is the appearance of motion created by displaying a series of still images in rapid sequence. One popular type of animation, called an animated GIF, uses computer animation and graphics software to combine several images into a single GIF file.

Audio is music, speech, or any other sound. A common format for audio files on the Web is MP3, a popular technology that compresses audio. More advanced Web audio applications use streaming audio, which transfers audio data in a continuous and even flow, allowing users to listen to the sound as it downloads. Video consists of full-motion images that are played back at various speeds. Video files often are quite large in size. The Moving Pictures Experts Group (MPEG) defines a popular video compression standard. Streaming video allows you to view longer or live video images as they are downloaded.

Virtual reality (VR) is the use of computers to simulate a real or imagined environment that appears as a three-dimensional (3-D) space. A VR world is an entire 3-D site that contains infinite space and depth.

7 | Define Webcasting

Pull technology is a method of obtaining information that relies on a client such as your computer to request a Web page from a server. On the other hand, Webcasting, also called push technology, is a method of obtaining information in which a server automatically downloads content to your computer at regular intervals or whenever updates are made to the site. Webcasting saves time by delivering information at regular intervals and allows users to view Web content when they are offline, that is, when they are not connected to the Internet.

8 | Describe The Uses Of Electronic Commerce (E-Commerce)

Electronic commerce (e-commerce) is a financial business transaction that occurs over an electronic network such as the Internet. Today, there are three types of e-commerce. Business to consumer (B-to-B or B2C) e-commerce consists of the sale of goods to the general public. Customers visit an online business through an electronic storefront, which contains descriptions, graphics, and a shopping cart that allows customers to collect their purchases. Consumer to consumer (C-to-C or C2C) e-commerce occurs when one consumer sells directly to another. An online auction is an example of consumer to consumer e-commerce. Business to business (B-to-B or B2B) e-commerce, which is the most prevalent type of e-commerce, takes place between businesses, with businesses typically providing services to other businesses.

9 | Explain How E-Mail, FTP, Newsgroups And Message Boards, Mailing Lists, Chat Rooms, And Instant Messaging Work

A variety of services are used widely on the Internet, including e-mail, FTP, newsgroups and message boards, mailing lists, chat rooms, and instant messaging. E-mail (electronic mail) is the transmission of messages and files via a computer network. You use an e-mail program to create, send, receive, forward, store, print, and delete messages. To receive messages, you need an e-mail address, which is a combination of a username and a domain name that identifies a user.

FTP (File Transfer Protocol) is an Internet standard that allows you to upload and download files with other computers on the Internet. An FTP server is a computer that allows you to use FTP to upload files to, and download files from, an FTP site. With anonymous FTP, anyone can transfer some, if not all, available files. A newsgroup is an online area in which users conduct written discussions about a particular subject. The computer that stores and distributes newsgroup messages is called a news server. You use a program called a newsreader to access a newsgroup, read previously entered messages (called articles), and add (post) messages of your own.

A thread consists of the original article and all subsequent related replies. In a moderated newsgroup, a moderator reviews articles and posts them, if appropriate. A message board is a popular Web-based type of discussion group that does not require a newsreader and typically is easier to use than a newsgroup. A mailing list is a group of e-mail names and addresses given a single name. To add your e-mail name and address to a mailing list you subscribe to it; to remove your name, you unsubscribe.

A chat is real-time (meaning everyone involved in the chat is online at the same time) typed conversation that takes place on a computer. A location on an Internet server that permits users to chat is called a chat room. Some chat rooms support voice chats and video chats, where you can hear or see others and they can hear or see you as you chat. A chat client is a program on your computer that allows you to connect to a chat server and start a chat session. Instant messaging (IM) is a real-time Internet communications service that notifies you when one or more people are online and then allows you to exchange messages or join a private chat room.

10 | Identify The Rules Of Netiquette

Netiquette, which is short for Internet etiquette, is the code of acceptable behaviors users should follow while on the Internet. Rules for e-mail, newsgroups, and chat rooms include:

  • Keep messages brief and use proper grammar and spelling.
  • Be careful when using sarcasm and humor.
  • Be polite and avoid offensive language.
  • Avoid sending flames (abusive messages) and spam (unsolicited junk mail).
  • Do not use all capital letters, which is the equivalent of SHOUTING!
  • Use emoticons (such as 🙂 for smile) to express emotion.
  • Use abbreviations (such as BTW for by the way) for popular phrases.
  • Clearly identify a spoiler, which is a message that reveals a solution to a game or an ending to a movie or program.
  • Read the FAQ (frequently asked questions) document.
  • Do not assume all material is accurate or up-to-date.
  • Never read someone’s private e-mail.

Expand Your Knowledge

  1. The Internet
  2. Accessing the Internet
  3. URLs
  4. Searching the Web
  5. Types of Web Pages
  6. How Web Pages Use Multimedia
  7. Webcasting
  8. E-Commerce
  9. Web Publishing
  10. Internet Services
  11. Netiquette

Here you will find additional information that will expand and enhance your knowledge beyond that contained in your textbook. Compare this information to what may be provided in a traditional classroom by your instructor or peers.

1| The Internet

The Internet has had a profound affect on the world of computers. Microsoft CEO Bill Gates claims, “The Internet is pervasive in everything we’re doing.” The Internet also has assumed an increasing prominence in the world at large. Today, the letters “www” seem an omnipresent part of advertisements on buses, billboards, and magazines.

The Internet, as it is known today, was born in 1983 when ARPANET was split into two interconnected networks: ARPANET and MILNET. The size of the Internet doubled when NSFnet joined the Internet in 1986.

The Internet has proven to be a reliable means of transmitting data. Occasionally, however, transmission problems do occur. For 30 minutes in the spring of 1995, all of the traffic destined for MIT was sent through a small wire in Florida, a situation described as equivalent to routing all of the flights bound for O’Hare to a driveway.

2 | Accessing the Internet

National ISPs include AT&T, Earthlink, and WorldCom. Two popular OSPs are America Online (AOL) and the Microsoft Network (MSN). Some online services supply specific types of information. For example, Dow Jones provides financial and business news, and Imagination offers games and entertainment. WSPs include GoAmerica Communications, OmniSky, and SprintPCS. The role of WSP is expected to grow. Industry analysts predict that by 2003, more than 60 million people will use wireless Web-enabled devices to connect to the Internet. The CEO of Amazon.com goes even farther, projecting that in 10 years all Internet connections be wireless.

Although most ISPs charge a standard fee for dial-up access, to attract users (who view advertisements on an ISP’s home page) some ISPs now are providing free service. Following this lead, a California-based DSL recently advertised free, high-speed Internet access (a service that usually costs $50 a month) to users who agree to ads aimed at their demographic group.

3 | URLs

On a Web page, a link is a built-in connection to another related Web page or part of a Web page. A link can be a word, phrase, or image. URLs make it possible to navigate using links, because each link is connected to a URL. When you click a link, the Web site or document associated with the URL is displayed. Some people refer to this activity of jumping from one Web page to another as surfing the Web.

URLs are registered for a standard fee (usually about $70). To acquire an appropriate URL, some companies are willing to spend a great deal more for a URL that already has been registered. Recently, eCompanies paid an entrepreneur $7.5 million for a Web address. This more than doubled the previous record – Compaq’s purchase of altavista.com for $3 million.

4 | Searching The Web

The World Wide Web is an incredible source of information on almost any topic. There are almost 2.5 billion Web pages. Exploring this vast reservoir for the answer to a search engine user’s query, which usually is expressed in just a few keywords, is a daunting task. No wonder an engineering head at AltaVista described search engines as a combination of “wizardry and witchcraft.”

Often, simple search queries yield an overwhelming number of results. This is attributed to several factors:

The limitations of search engines. A query about mustangs on the American plains might produce results involving Southern Methodist University’s football team and the Ford car.

The nature of queries. While a traditional researcher, such as a librarian, uses queries averaging 14 words, the typical Internet query is just over one word.

The creators of Web pages. Developers of commercial Web pages sometimes distort results by repeating frequently requested keywords in the background, where spiders see them but people do not.

Despite these difficulties, search engines are among the most popular sites on the Web. When choosing a search engine, experts suggest that novice users, and users looking for obscure information, turn first to the larger search engines (AltaVista, Yahoo!, Lycos, and so on) because they are easiest to use and cast the largest net.

5 | Types of Web Pages

Advocacy Web pages established for political candidates, called “e-campaigning,” has become an important part of politics. Surveys show that more than 50 percent of Internet users turn to the Web for information about political topics.

Business/marketing Web pages used for shopping on the Internet are increasingly popular. In 1999, 17 million households shopped online. This figure is expected to grow to 49 million by 2004. A survey of back-to-school shoppers 34 years old and younger showed that 17 percent planned to shop online for their children’s school needs. Perhaps more significant, only 6 percent of surveyed shoppers reported being uncomfortable with buying on the Internet.

Educational institutions frequently publish informational Web pages. Today, most colleges have Web sites that offer course descriptions, information about the student population, and registration costs and deadlines. When shopping for college, surveys show that high school seniors use the Web more than catalogs or guidebooks; about 80 percent of college-bound students start looking at college Web sites as sophomores.

News Web pages are the most popular Web sites among Americans with access to the Internet. Although these Web sites often are associated with newspapers, magazines, television stations, or radio stations, some are published only online, without a related print or broadcast media.

Portal Web pages often offer the following free services: search engine, news, sports and weather, free personal Web pages, reference tools, shopping malls, e-mail, instant messaging, newsgroups, and chat rooms. The dictionary defines a “portal” as a door or gateway. Portal Web pages are gateways to a host of services.

Personal Web pages sometimes use Web cams to provide minute-by-minute views of life in a dorm room, an apartment, a new-born baby’s crib, or even the inside of a refrigerator. One devotee of these personal Web pages says visitors often develop a sort of “relationship” with the Web page developer. Perhaps this observation is true; some personal Web pages receive more than 1,000 hits a day.

6 | How Web Pages Use Multimedia

Multimedia can bring a Web page to life, increase the types of information available on the Web, expand on the Web’s potential uses, and make the Internet a more entertaining place to explore. Because Web pages with multimedia take longer to download, most browsers allow users to turn off some multimedia elements (such as graphics) and show a text-only version, speeding the display of a Web page.

Choose a topic for a Web page, such as your school or your class. How could multimedia enhance the page? What multimedia elements would you use? How?

7 | Webcasting

Some people use Webcasting to download copyrighted material, such as music, from Web sites. Many young, unknown musicians see music Web sites as a way to gain exposure, but some already-popular musicians see sharing music on Web sites as little more than theft. The heavy metal rock band Metallica sued Napster (a music Web site) for copyright violations. A number of colleges have placed a ban on music Web sites. These schools maintain that students downloading and sharing music creates a tremendous amount of traffic, clogging the school’s computer systems. As a result, the schools are using filtering software to deny access to music Web sites. Several student groups have formed to protest this response.

8| E-Commerce

Today, more than 50 percent of Web sites are commercial. Online product sales total more than $6 billion, which represents a twelve-fold increase in just five years. These numbers should be kept in perspective – in 1999, e-commerce still represented only 0.5 percent of U.S. consumer spending.

Business to consumer e-commerce often allows buyers to purchase directly from businesses, eliminating the middleman and thus providing goods and services at lower costs. Other advantages of e-commerce include:

  • twenty-four hour access
  • global presence
  • two-way communication
  • decreased costs
  • lower product display and storage costs
  • reduced salesperson costs

Businesses advertise with their own Web site or on another company’s Web site. The most successful Web advertisements are on popular sites, such as search engines. In terms of audience, advertising on the Web is expensive. The cost to reach 1,000 consumers is about $75 on the Web, $60 in a newspaper, $44 in a magazine, and $5 on television. Yet, Web advertisements do offer advantages:

Unlike traditional media advertising, which is passive (and often ignored by the audience), Web advertising is interactive. The audience expresses an interest in the product by clicking a hyperlink and choosing to view a Web ad.
For many products, Web users are the ideal customers. Web users tend to be students or highly educated consumers in their late 30s, with average incomes of about $55,000.
What products could benefit most from advertising on the Web. Why?

9 | Web Publishing

Deciding upon the purpose of the Web site and the audience for whom it is intended will make it easier to determine what should and should not be included on the Web site. Web publishing is an increasingly commonplace Internet activity. With the assistance of word processing packages, Web page authoring software, or Web sites that assist in the creation of Web pages, even elementary school children are developing personal Web pages.

10 | Internet Services

It is estimated that the number of e-mail users has increased 300 percent during the past five years, and the number of e-mail messages sent per day has increased 400 percent. While its growth has been phenomenal, not everyone is happy with e-mail’s ever-increasing use. In a business setting, some feel that e-mail can be counter-productive. They contend that employees spend too much time writing and reading e-mail on inconsequential topics – subjects they never would commit to paper. In a social setting, some wonder if e-mail is fitting in every situation. Although e-mail is suitable for casual messages, most believe it is inappropriate for more serious or formal communication, such as a wedding invitation. How do you feel about these reservations regarding e-mail?

Many files on anonymous FTP sites are public domain software, freeware, or shareware. Public domain software is not copyrighted and therefore can be distributed at no cost. Freeware also is available at no cost but, because it is copyrighted, it cannot be resold. Shareware can be downloaded and tried for free, but a license fee must be paid if the software is kept. Shareware users who pay the license fee may receive a manual, notification of new releases or tips, and access to technical support. The quality of freeware, public domain software, and shareware varies greatly.

The real-time character of chat makes chat rooms different from newsgroups or mailing lists. The extent to which a chat room is monitored varies. In some chat rooms, particularly those aimed at adults, a monitor’s presence hardly is noticed. Chat rooms intended for minors, however, often are monitored closely. Chat rooms can be an invaluable experience for children, letting them share thoughts and ideas with people their own age from around the country, or even around the world. Yet, to ensure that content is appropriate, parents may want to oversee a child’s first few chat room visits.

11 | Netiquette

Netiquette can be applied to all aspects of the Internet. Which netiquette rules are most important? Which rules are least important? Why? What rules, if any, would you add? In her book, Guide for the Turn-of-the-Millennium, syndicated columnist Judith Martin (Miss Manners) offers guidelines for use of the Internet and other technological innovations. Web sites such as http://www.fau.edu/netiquette/netiquette.htm also offer advice on Internet manners.

Introduction to Computers

Chapter 1: Introduction to Computers


  1. Explain the importance of computer literacy
  2. Define the term computer
  3. Identify the components of a computer
  4. Explain why a computer is a powerful tool
  5. Differentiate among the various types of software
  6. Explain the purpose of a network
  7. Discuss the uses of the Internet and the World Wide Web
  8. Describe the categories of computers and their uses
  9. Identify the various types of computer users
  10. Understand how a user can be a Web publisher

This chapter presents a broad survey of concepts and terminology related to computers. The idea of computer literacy is introduced. You discover what a computer is and what it does. You learn about the components of a computer, the power of computers, computer software, and networks and the Internet. Categories of computers are identified, including personal computers, minicomputers, mainframe computers, and supercomputers.

You discover how people employ computers, from home users to large business users. Finally, you learn how people use computers to provide information. Reading and understanding the material in this chapter should help you better understand these topics as they are presented in more detail in the following chapters.

1 | Explain The Importance Of Computer Literacy

Computers have touched every part of our lives: the way we work, the way we learn, the way we live, even the way we play. It almost is impossible to go through a single day without encountering a computer, a device dependent on a computer, information produced by a computer, or a word that was introduced or whose meaning has changed with the advent of computers. Because of the significance of computers in today’s world, it is important to be computer literate. Being computer literate means you have knowledge and understanding of computers and their uses.

2 | Define The Term Computer

A computer is an electronic machine, operating under the control of instructions stored in its own memory, that can accept data, manipulate the data according to specified rules, produce results, and store the results for future use. Computers process data to create information. Data is a collection of raw unprocessed facts, figures, and symbols. Information is data that is organized, meaningful, and useful. To process data into information, a computer uses hardware and software. Hardware is the electric, electronic, and mechanical equipment that makes up a computer. Software is the series of instructions that tells the hardware how to perform tasks.

3 | Identify The Components Of A Computer

Computer hardware components include input devices, output devices, a system unit, storage devices, and communications devices. An input device is any hardware component that allows a user to enter data and instructions into a computer. Six commonly used input devices are the keyboard, mouse, microphone, scanner, digital camera, and PC camera. An output device is any hardware component that can convey information to a user. Three commonly used output devices are a printer, a monitor, and speakers.

The system unit is a box-like case made from metal or plastic that protects the internal electronic components of the computer from damage. The system unit contains the central processing unit and memory. The central processing unit (CPU) is the electronic device that interprets and carries out the basic instructions that operate the computer. Memory is a temporary holding place for data and instructions.

A storage device records and retrieves data to and from a storage medium. Six common storage devices are a floppy disk drive, a Zip® drive, a hard disk drive, a CD-ROM drive, a CD-RW drive, a DVD-ROM drive, and a DVD+RW drive. A communications device enables computer users to communicate and exchange items such as data, instructions, and information with another computer. A modem is a communications device that enables computers to communicate usually via telephone lines or cable.

4 | Explain Why A Computer Is A Powerful Tool

A computer is a powerful tool because it is able to perform the information processing cycle operations (input, process, output, and storage) with amazing speed, reliability, and accuracy; store huge amounts of data and information; and communicate with other computers. Computers allow users to generate correct information quickly, hold the information so it is available at any time, and share the information with other computer users.

5 | Differentiate Among The Various Types Of Software

There are two categories of computer software: system software and application software. System software consists of the programs that control the operations of a computer and its devices. Two types of system software are the operating system and utility programs. An operating system (OS) coordinates all activities among hardware devices and contains instructions that allow you to run application software. A utility program performs specific tasks, usually related to managing a computer, its devices, or its programs. You interact with software through its user interface.

Application software consists of programs that perform specific tasks for users. Popular application software includes word processing software, spreadsheet software, database software, and presentation graphics software. Application software can be packaged software (copyrighted software that meets the needs of a variety of users), custom software (tailor-made software developed at a user’s request), freeware (copyrighted software provided at no cost), public-domain software (software donated for public use with no copyright restrictions), or shareware (copyrighted software distributed free for a trial period).

6 | Explain The Purpose Of A Network

A network is a collection of computers and devices connected together via communications devices, such as a modem, and communications media, such as cables, telephone lines, cellular radio, and satellites. Networks allow users to share resources, such as hardware devices, software devices, data, and information. Most business computers are networked, either by a local area network (LAN) in a limited geographic area or by a wide area network (WAN) in a large geographical area.

7 | Discuss The Uses Of The Internet And The World Wide Web

The world’s largest network is the Internet, which is a worldwide collection of networks that links together millions of businesses, government agencies, educational institutions, and individuals. Users connect to the Internet to send messages, access information, shop for goods and services, meet or converse with other users, and access sources of entertainment and leisure. Most users connect to the Internet through an Internet service provider (ISP) or an online service provider (OSP). The World Wide Web is a popular segment of the Internet that contains billions of documents called Web pages. These documents can contain text, graphics, sound, video, and built-in connections, or links, to other Web pages stored on computers throughout the world.

8 | Describe The Categories Of Computers And Their Uses

The six major categories of computers are personal computers, handheld computers, Internet appliances, mid-range servers, mainframes, and supercomputers. These categories are based on differences in size, speed, processing capabilities, and price. A personal computer can perform all of its input, processing, output, and storage activities by itself. Personal computers include desktop computers and notebook computers. A desktop computer is designed so the system unit, input devices, output devices, and any other devices fit entirely on or under a desk or table. Variations of desktop computers include tower models (computers with tall and narrow system units that can sit vertically on the floor), all-in-one computers (less expensive computers that combine the monitor and system unit into a single device), and workstations (more expensive and powerful computers designed for work that requires intense calculation and graphics capabilities).

A notebook computer is a portable personal computer small enough fit on your lap. Notebook and desktop computers are used at home or in the office to perform application software-related tasks or to access the Internet. A handheld computer is a small computer that fits in your hand. Handheld computers can perform specific, industry-related functions, or can be general-purpose.

A PDA (personal digital assistant) is a handheld computer that provides personal organizer functions, such as a calendar, appointment book, and notepad. An Internet appliance is a computer with limited functionality whose main purpose is to connect to the Internet from home. A mid-range server is more powerful and larger than a workstation computer. Users typically access a mid-range server through a personal computer or a terminal, which is a device with a monitor and a keyboard that usually has no stand-alone processing power.

A mainframe is a large, expensive, very powerful computer that can handle hundreds or thousands of connected users simultaneously. A supercomputer is the fastest, most powerful, and most expensive category of computer.

9 | Identify The Various Types Of Computer Users

Computer users can be divided into five categories: home user, small office/home office users, mobile users, large business users, and power users. A home user spends time on the computer for personal and business communications, budgeting and personal financial management, entertainment, and Web access. A small office/home office (SOHO) user includes any company with fewer than 50 employees, as well as self-employed people that work out of their home. A mobile user travels to and from a main office or school to conduct business, communicate, or do homework. A large business user works for a company that has a large number of employees and computers usually connected to a network. The power user – such as an engineer, architect, or desktop publisher – typically works with multimedia, which combines several media elements into one application, and requires the capabilities of a workstation or other powerful computer.

10 | Understand How A User Can Be A Web Publisher

In addition to being a recipient of information, Internet users have the ability to provide information to other connected users around the world. Users can create a Web page with word processing software or with Web page authoring software. Publishing a Web page is the process of making it available on the Internet.

Expand Your Knowledge

  1. Computer literacy
  2. Computer
  3. Computer components
  4. Computer power
  5. Computer software
  6. Networks
  7. The Internet
  8. Computer categories
  9. Types of computer users
  10. Web publishing

Here you will find additional information that will expand and enhance your knowledge beyond that contained in your textbook. Compare this information to what may be provided in a traditional classroom by your instructor or peers.

1 | Computer Literacy

It is difficult to think of a field in which computers are not used. In addition to general-purpose computers, special-purpose computers are used in everything from automobiles to electric razors. Consider how computers have influenced our daily lives, both positively and negatively. (“To err is human, but to really foul things up requires a computer.” – Anonymous, from a BBC Radio broadcast.) List ways in which computers are being used today. What is the most common use? What is the most unusual use? As a result of the expanding use of computers, in 1986 Florida became the first state to demand computer literacy of all students by grade 12.

2 | Computer

Although computers are thought of as a relatively recent innovation, the term computer has a long history. Prior to 1940, “computer” was a job title that referred to anyone performing calculations.

Consider how data is different from information. Data is processed into information. Clifford Stoll – lecturer, computer security expert, and author of Silicon Snake Oil: Second Thoughts on the Information Superhighway – notes a wide gap between data and information. Stoll insists that information has a pedigree, or lineage. Its source is known, whether by a respected professor or a seventh grader. “The Internet has great gobs of data,” Stoll maintains, “and little, little information.”

The first three operations in the information processing cycle — input, process, and output — are performed to process data into information, while the fourth operation — storage — refers to a computer’s electronic reservoir capability. Think about how we perform each phase in the information processing cycle in the “human computer” (i.e., the human brain) while completing a common task, such as learning a telephone number.

3 | Computer Components

Different types of input devices are designed to transmit different types of data or to transmit data in different ways. Think of other input devices (joysticks, scanners, digital cameras, and so on) and the different types of data they transmit or the different ways they transmit data.

Because it is more lasting than output from a monitor or speaker, the printer’s output often is called hard copy. Think of other output devices with which you are familiar (data projectors, computer output microfilm, and so on).

Some computer components are considered internal, while others are considered external. External components are called peripherals. Input, output, and communications devices often are peripheral devices.

The difference between the temporary character of memory and permanent nature of storage will be made painfully clear the first time you experience a power failure while working on a computer. Think of other examples of storage devices (magnetic tape, PC Cards, and so on).

The capability to communicate may be one of the most significant factors influencing how computers are used now and in the future.

4 | Computer Power

In one billionth of a second, an electronic signal travels almost 12 inches. This means that today’s supercomputer (the fastest, most powerful, and most expensive category of computers) can perform 1.8 trillion operations per second. If a person did one arithmetic operation a second without stopping, it would take more than 31,000 years to perform the number of operations a supercomputer can do in one second. Researchers predict that one day computer speed will be measured in exaflops, or one quintillion (1 x 1018) calculations per second.

The reliability of computer components often is measured in MTBF (mean time between failure, in hours). A typical component might be rated 10,000 MTBF.

Although the term “computer error” is widespread, most computer errors can be traced to human mistakes. Consider instances of computer error with which you are familiar. How might human blunders have resulted in the computer error? Why are people apt to blame computers?

Supercomputers have more than 600 gigabytes of memory, meaning that they can store more than 600 billion letters, numbers, and special characters, and have 2 terabytes (2 trillion bytes) of disk space. Equally important is the speed at which data can be retrieved, processed, and stored again.

Connected computers can share each operation in the information processing cycle. To recognize the value of communication, imagine trying to solve a problem individually, and then trying to solve the same problem with the assistance of several classmates.

5 | Computer Software

The difference between computer hardware and computer software is important. A 3½-inch floppy disk is hardware; however the programs stored on it are software. Programs or software, like data, are input into the computer.

Because you interact with it directly, you may be more consciously aware of application software than system software. Remember that system software determines how you interact with application software. Popular operating systems include DOS (Disk Operating System), Windows 3.x (technically, not an operating system but an operating environment that makes DOS easier to use), Windows 95, Windows 98, Windows 2000, Windows XP, Mac OS, OS/2, UNIX, Linux (rhymes with cynics), and NetWare. DOS was developed by Microsoft for IBM personal computers. DOS started Microsoft’s climb to the top of the software world — at one time, versions of DOS were used worldwide by more than 100 million people. DOS has a command-line interface, meaning that people have to memorize and type instructions.

Today, operating systems with a graphical user interface, such as Microsoft’s Windows, are far more popular.

Most application software packages are designed to be used with specific operating systems. Much of the software with which you are familiar is packaged software. Because of their complexity, most software programs are written by teams of programmers working together. Just as people understand a variety of spoken languages (English, French, Chinese, and so on), computers recognize a number of programming languages.

6 | Networks

A network with which you might be familiar is the school computer lab. Consider resources that can be shared on a network. For example, the school computer lab may share a single printer. Think of advantages of sharing resources. Why are most business computers part of a network?

7 | The Internet

Estimates claim that more than 50 percent of U.S. homes are connected to the Internet, and more than 13 million do so through an online service provider. Although the growth rate of the Internet and online services has slowed from a peak of more than 140 percent in 1994-95, the growth rate still is around 20 percent annually. Surveys show the number of Web site visitors continues to expand rapidly, practically doubling every year. Interestingly, surveys show that teenage boys and girls are accessing the Internet for different reasons. While boys seem to focus on entertainment, girls use the Internet more for schoolwork and chat.

8 | Computer Categories

In addition to differences in size, speed, processing capabilities, and price, other factors, such as the size of main memory and number of peripheral devices, also can be considered when categorizing computers. Rapid changes in technology make it difficult to define categories precisely. As a rule of thumb, today’s PCs have about as much memory and processing power as the mainframes of a decade ago.

Think of personal computers with which you are familiar. How is the computer used? What factors influence the choice of a personal computer? In addition to such obvious considerations as processing speed and amount of memory, less apparent factors, such as available software or even the computer’s “footprint” (the amount of space it occupies on the work surface) also may be important. A desktop computer monitor often is placed on top of the system unit case. This sometimes can be an ergonomic problem, forcing users to look up. Server computers often are used in academic environments. What features of server computers would make them particularly attractive to schools? In today’s mobile society, notebook computers have become indispensable tools. Since 1993, sales of notebook, and smaller computers have rivaled sales of larger systems, partly because of their enhanced capabilities and increased use by field sales forces. The capabilities of handheld computers also continue to expand. Visor, a new handheld computer from Handspring, is an electronic organizer but also offers video games, a cell phone, a modem, an MP3 player, and a two-way pager. Called the “Swiss Army knife of handheld computers,” Visor uses the Palm operating system, which is the same operating system used by the Palm Pilot, a popular handheld computer from 3Com, and is available for about $200.

The growing movement toward decentralization in business, coupled with the increasing power of mid-range servers, has led to a recent trend away from mainframe computers and toward mid-range servers. What advantages might mid-range servers have over mainframe computers for a business?

Organizations that deal with huge, constantly changing collections of data accessed simultaneously by many users, such as banks, insurance companies, universities, and government agencies, often use mainframe computers. Despite this, mainframe sales are declining approximately 10 percent per year.

One of the most important features of supercomputers is their capability to create complex, three-dimensional images almost instantaneously. Television networks often use supercomputers to generate complicated images and then give viewers the sense of “going through” the image. Due to their size and expense, only large businesses and government agencies use supercomputers. IBM’s Option Blue supercomputer was used by the Department of Energy to simulate nuclear explosions, allowing the effects of aging and adverse conditions on nuclear weapons to be explored without underground detonations.

9 | Types of Computer Users

A major concern related to the home user is the digital divide, which is the idea that the people of the world can be separated into two distinct groups: those that have access to technology with the ability to use it and those that do not have access to technology or are without the ability to use it. Recent reports suggest that the digital divide exists on several levels:

Individuals in higher income levels have greater access to the Internet than people in lower levels, and the gap may be growing.

African-Americans earning less than $40,000 are less than half as likely to own a computer as whites in the same income group.

Women are under-represented in today’s computer classes and technology jobs.

A number of efforts are being made to narrow the digital divide.

Networks have changed the face of both small and large business. In the 1970s, executives usually worked with monthly reports; in the 1980s, they used weekly reports; today, daily or even hourly reports are available. How have computers affected the efficiency of businesses? What impact have computers had on the “interpersonal” side of business (i.e., employee and customer relationships)? How have computers changed people’s jobs? Have computers cost any people their jobs?

10 | Web Publishing

With today’s Web page authoring software, children as young as 10 years old, and sometimes younger, can create and publish their own Web pages. If you created a Web page, what type of information would you provide? Why? Would you be interested in seeing someone else’s Web page? Why or why not? If you have created a Web page, what type of software did you use? What was the most difficult part of creating your Web page?

Apple Inc.


From Wikipedia, the free encyclopedia


Apple Inc.



The Apple Campus at 1 Infinite Loop, Cupertino, California

  • Formerly called:              
    •  Apple Computer Company (1976–1977)
    • Apple Computer, Inc. (1977–2007)
  • Type:     Public
  • Traded as:
    • NASDAQ-100 Component
    • DJIA Component
    • S&P 100 Component
    • S&P 500 Component
  • ISIN: US0378331005
  • Industry

    • Computer Hardware
    • Computer Software
    • Consumer Electronics
    • Digital Distribution
    • Fabless Silicon Design
    • Corporate Venture Capital
  • Founded:  April 1, 1976; 41 years ago
  • Founders:          
    • Steve Jobs
    • Steve Wozniak
    • Ronald Wayne
  • Headquarters: Apple Campus, Cupertino, California, U.S.
  • Number of locations: 498 retail stores (2017)
  • Area served: Worldwide
  • Key people:
    • Arthur D. Levinson (Chairman)
    • Tim Cook (CEO)
    • Jonathan Ive (CDO)
    • Luca Maestri (CFO)
    • Jeff Williams (COO)
  • Products: Macintosh iPod iPhone iPad Apple Watch Apple TV HomePod macOS iOS watchOS tvOS iLife iWork
  • Services: Apple Pay Apple Store iTunes Store App Store Mac App Store iBooks Store iCloud Apple Music
  • Revenue:  Decrease US$215.639 billion (2016)
  • Operating income: Decrease US$60.024 billion (2016)
  • Net income: Decrease US$45.687 billion (2016)
  • Total assets:  Increase US$321.686 billion (2016)
  • Total equity:  Increase US$128.249 billion (2016)
  • Number of employees: 116,000 (2016)
  • Subsidiaries: FileMaker Inc. Anobit Braeburn Capital Beats Electronics Apple Energy, LLC Apple Sales International
  • Website: apple dot com

Apple Inc. is an American multinational technology company headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software, and online services. The company’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computers, the iPod portable media player, the Apple Watch smartwatch, Apple TV digital media player and HomePod smart speaker.

Apple’s consumer software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the iLife and iWork creativity and productivity suites. Its online services include the iTunes Store, the iOS App Store and Mac App Store, Apple Music, and iCloud.

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell personal computers. It was incorporated as Apple Computer, Inc. in January 1977, and sales of its computers saw significant momentum and revenue growth for the company.

Within a few years, they had hired a staff of computer designers and had a production line. Apple went public in 1980 to instant financial success. Over the next few years, Apple shipped new computers featuring innovative graphical user interfaces, and Apple’s marketing commercials for its products received widespread critical acclaim.

However, the high price tag of its products and limited software titles caused problems, as did power struggles between executives at the company.

Jobs resigned from Apple and created his own company. As the market for personal computers increased, Apple’s computers saw diminishing sales due to lower-priced products from competitors, in particular those offered with the Microsoft Windows operating system.

More executive job shuffles happened at Apple until then-CEO Gil Amelio in 1997 decided to buy Jobs’ company to bring him back. Jobs regained position as CEO, and began a process to rebuild Apple’s status, which included opening Apple’s own retail stores in 2001, making numerous acquisitions of software companies to create a portfolio of software titles, and changed some of the hardware technology used in its computers. It again saw success and returned to profitability.

In January 2007, Jobs announced that Apple Computer, Inc. would be renamed Apple Inc. to reflect its shifted focus toward consumer electronics and announced the iPhone, which saw critical acclaim and significant financial success. In August 2011, Jobs resigned as CEO due to health complications, and Tim Cook became the new CEO. Two months later, Jobs died, marking the end of an era for the company.

Apple is the world’s largest information technology company by revenue and the world’s second-largest mobile phone manufacturer after Samsung. In February 2015, Apple became the first U.S. company to be valued at over US$700 billion. The company employs 116,000 full-time employees as of October 2016 and maintains 498 retail stores in 22 countries as of July 2017. It operates the iTunes Store, which is the world’s largest music retailer. As of January 2016, more than one billion Apple products are actively in use worldwide.

Apple’s worldwide annual revenue totaled $215 billion for the 2016 fiscal year. The company enjoys a high level of brand loyalty and has been repeatedly ranked as the world’s most valuable brand. However, it receives significant criticism regarding the labor practices of its contractors and its environmental and business practices, including the origins of source materials.


1976–84: Founding and Incorporation


 Apple’s first product, the Apple I, invented by Apple co-founder Steve Wozniak, was sold as an assembled circuit board and lacked basic features such as a keyboard, monitor, and case. The owner of this unit added a keyboard and wooden case.

Apple Computer Company was founded on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne. The company’s first product was the Apple I, a computer single-handedly designed and hand-built by Wozniak, and first shown to the public at the Homebrew Computer Club. Apple I was sold as a motherboard (with CPU, RAM, and basic textual-video chips), which was less than what is now considered a complete personal computer. The Apple I went on sale in July 1976 and was market-priced at $666.66 ($2,806 in 2016 dollars, adjusted for inflation).


 The birthplace of Apple Computer. In 1976, Steve Jobs co-founded the company in the garage of his childhood home on Crist Drive in Los Altos, California.

Apple Computer, Inc. was incorporated on January 3, 1977, without Wayne, who sold his share of the company back to Jobs and Wozniak for $800. Multimillionaire Mike Markkula provided essential business expertise and funding of $250,000 during the incorporation of Apple. During the first five years of operations revenues grew exponentially, doubling about every four months. Between September 1977 and September 1980 yearly sales grew from $775,000 to $118m, an average annual growth rate of 533%.


 The Apple II, introduced in 1977, was a major technological advancement over its predecessor.

The Apple II, also invented by Wozniak, was introduced on April 16, 1977, at the first West Coast Computer Faire. It differed from its major rivals, the TRS-80 and Commodore PET, because of its character cell-based color graphics and open architecture. While early Apple II models used ordinary cassette tapes as storage devices, they were superseded by the introduction of a 5 ¼ inch floppy disk drive and interface called the Disk II. The Apple II was chosen to be the desktop platform for the first “killer app” of the business world: VisiCalc, a spreadsheet program. VisiCalc created a business market for the Apple II and gave home users an additional reason to buy an Apple II: compatibility with the office. Before VisiCalc, Apple had been a distant third place competitor to Commodore and Tandy.

By the end of 1970’s, Apple had a staff of computer designers and a production line. The company introduced the Apple III in May 1980 in an attempt to compete with IBM and Microsoft in the business and corporate computing market. Jobs and several Apple employees, including Jef Raskin, visited Xerox PARC in December 1979 to see the Xerox Alto. Xerox granted Apple engineers three days of access to the PARC facilities in return for the option to buy 100,000 shares (800,000 split-adjusted shares) of Apple at the pre-IPO price of $10 a share.

Jobs was immediately convinced that all future computers would use a graphical user interface (GUI), and development of a GUI began for the Apple Lisa. In 1982, however, he was pushed from the Lisa team due to infighting. Jobs took over Jef Raskin’s low-cost-computer project, the Macintosh. A race broke out between the Lisa team and the Macintosh team over which product would ship first. Lisa won the race in 1983 and became the first personal computer sold to the public with a GUI, but was a commercial failure due to its high price tag and limited software titles.

On December 12, 1980, Apple went public at $22 per share, generating more capital than any IPO since Ford Motor Company in 1956 and immediately creating 300 millionaires.

1984–91: Success with Macintosh


 The Macintosh, released in 1984, was the first mass-market personal computer that featured an integral graphical user interface and mouse.

In 1984, Apple launched the Macintosh, the first personal computer to be sold without a programming language. Its debut was signified by “1984”, a $1.5 million television commercial directed by Ridley Scott that aired during the third quarter of Super Bowl XVIII on January 22, 1984. The commercial is now hailed as a watershed event for Apple’s success and was called a “masterpiece” by CNN and one of the greatest commercials of all time by TV Guide.

The Macintosh initially sold well, but follow-up sales were not strong due to its high price and limited range of software titles. The machine’s fortunes changed with the introduction of the LaserWriter, the first PostScript laser printer to be sold at a reasonable price, and PageMaker, an early desktop publishing package. It has been suggested that the combination of these three products were responsible for the creation of the desktop publishing market. The Macintosh was particularly powerful in the desktop publishing market due to its advanced graphics capabilities, which had necessarily been built in to create the intuitive Macintosh GUI.

In 1985, a power struggle developed between Jobs and CEO John Sculley, who had been hired two years earlier. The Apple board of directors instructed Sculley to “contain” Jobs and limit his ability to launch expensive forays into untested products. Rather than submit to Sculley’s direction, Jobs attempted to oust him from his leadership role at Apple. Sculley found out that Jobs had been attempting to organize a coup and called a board meeting at which Apple’s board of directors sided with Sculley and removed Jobs from his managerial duties. Jobs resigned from Apple and founded NeXT Inc. the same year.


 The Macintosh Portable, released in 1989, was Apple’s first battery-powered portable Macintosh personal computer.

After Jobs’ departure, the Macintosh product line underwent a steady change of focus to higher price points, the so-called “high-right policy” named for the position on a chart of price vs. profits. Jobs had argued the company should produce products aimed at the consumer market and aimed for a $1000 price for the Macintosh, which they were unable to meet. Newer models selling at higher price points offered higher profit margin, and appeared to have no effect on total sales as power users snapped up every increase in power. Although some worried about pricing themselves out of the market, the high-right policy was in full force by the mid-1980s, notably due to Jean-Louis Gassée’s mantra of “fifty-five or die”, referring to the 55% profit margins of the Macintosh II.

This policy began to backfire in the last years of the decade as new desktop publishing programs appeared on PC clones that offered some or much of the same functionality of the Macintosh but at far lower price points. The company lost its monopoly in this market, and had already estranged many of its original consumer customer base who could no longer afford their high-priced products. The Christmas season of 1989 was the first in the company’s history that saw declining sales, and led to a 20% drop in Apple’s stock price. Gassée’s objections were overruled, and he was forced from the company in 1990. Later that year, Apple introduced three lower cost models, the Macintosh Classic, Macintosh LC and Macintosh IIsi, all of which saw significant sales due to pent up demand.

In 1991, Apple introduced the PowerBook, replacing the “luggable” Macintosh Portable with a design that set the current shape for almost all modern laptops. The same year, Apple introduced System 7, a major upgrade to the operating system which added color to the interface and introduced new networking capabilities. It remained the architectural basis for the Classic Mac OS. The success of the PowerBook and other products brought increasing revenue. For some time, Apple was doing incredibly well, introducing fresh new products and generating increasing profits in the process. The magazine MacAddict named the period between 1989 and 1991 as the “first golden age” of the Macintosh.

Apple believed the Apple II series was too expensive to produce and took away sales from the low-end Macintosh. In the 1990s, Apple released the Macintosh LC, and began efforts to promote that computer by advising developer technical support staff to recommend developing applications for Macintosh rather than Apple II, and authorizing salespersons to direct consumers towards Macintosh and away from Apple II. The Apple IIe was discontinued in 1993.

1991–97: Decline and Restructuring


 The Penlite was Apple’s first attempt at a tablet computer. Created in 1992, the project was designed to bring the Mac OS to a tablet – but was shelved in favor of the Newton.

The success of Apple’s lower-cost consumer models, especially the LC, also led to cannibalization of their higher priced machines. To address this, management introduced several new brands, selling largely identical machines at different price points aimed at different markets. These were the high-end Quadra, the mid-range Centris line, and the ill-fated Performa series. This led to significant market confusion, as customers did not understand the difference between models.

Apple also experimented with a number of other unsuccessful consumer targeted products during the 1990s, including digital cameras, portable CD audio players, speakers, video consoles, the eWorld online service, and TV appliances. Enormous resources were also invested in the problem-plagued Newton division based on John Sculley’s unrealistic market forecasts.[citation needed] Ultimately, none of these products helped and Apple’s market share and stock prices continued to slide.[citation needed]

Throughout this period, Microsoft continued to gain market share with Windows by focusing on delivering software to cheap commodity personal computers, while Apple was delivering a richly engineered but expensive experience. Apple relied on high profit margins and never developed a clear response; instead, they sued Microsoft for using a GUI similar to the Apple Lisa in Apple Computer, Inc. v. Microsoft Corp. The lawsuit dragged on for years before it was finally dismissed. At this time, a series of major product flops and missed deadlines sullied Apple’s reputation, and Sculley was replaced as CEO by Michael Spindler.


 The Newton was Apple’s first foray into the PDA markets, as well as one of the first in the industry. Despite being a financial flop at the time of its release, it helped pave the way for the PalmPilot and Apple’s own iPhone and iPad in the future.

By the early 1990s, Apple was developing alternative platforms to the Macintosh, such as A/UX. The Macintosh platform itself was becoming outdated because it was not built for multitasking and because several important software routines were programmed directly into the hardware. In addition, Apple was facing competition from OS/2 and UNIX vendors such as Sun Microsystems. The Macintosh would need to be replaced by a new platform or reworked to run on more powerful hardware.

In 1994, Apple allied with IBM and Motorola in the AIM alliance with the goal of creating a new computing platform (the PowerPC Reference Platform), which would use IBM and Motorola hardware coupled with Apple software. The AIM alliance hoped that PReP’s performance and Apple’s software would leave the PC far behind and thus counter Microsoft. The same year, Apple introduced the Power Macintosh, the first of many Apple computers to use Motorola’s PowerPC processor.

In 1996, Spindler was replaced by Gil Amelio as CEO. Amelio made numerous changes at Apple, including extensive layoffs and cut costs. After numerous failed attempts to improve Mac OS, first with the Taligent project and later with Copland and Gershwin, Amelio chose to purchase NeXT and its NeXTSTEP operating system and bring Steve Jobs back to Apple.

1997–2007: Return to Profitability


Power Mac was a line of Apple Macintosh workstation-class personal computers based on various models of PowerPC microprocessors that were developed from 1994 to 2006.

The NeXT deal was finalized on February 9, 1997, bringing Jobs back to Apple as an advisor. On July 9, 1997, Amelio was ousted by the board of directors after overseeing a three-year record-low stock price and crippling financial losses. Jobs acted as the interim CEO and began restructuring the company’s product line; it was during this period that he identified the design talent of Jonathan Ive, and the pair worked collaboratively to rebuild Apple’s status.

At the 1997 Macworld Expo, Jobs announced that Apple would join Microsoft to release new versions of Microsoft Office for the Macintosh, and that Microsoft had made a $150 million investment in non-voting Apple stock. On November 10, 1997, Apple introduced the Apple Online Store, which was tied to a new build-to-order manufacturing strategy.

On August 15, 1998, Apple introduced a new all-in-one computer reminiscent of the Macintosh 128K: the iMac. The iMac design team was led by Ive, who would later design the iPod and the iPhone. The iMac featured modern technology and a unique design, and sold almost 800,000 units in its first five months.

During this period, Apple completed numerous acquisitions to create a portfolio of digital production software for both professionals and consumers. In 1998, Apple purchased Macromedia’s Key Grip software project, signaling an expansion into the digital video editing market. The sale was an outcome of Macromedia’s decision to solely focus upon web development software. The product, still unfinished at the time of the sale, was renamed “Final Cut Pro” when it was launched on the retail market in April 1999. The development of Key Grip also led to Apple’s release of the consumer video-editing product iMovie in October 1999. Next, Apple successfully acquired the German company Astarte, which had developed DVD authoring technology, as well as Astarte’s corresponding products and engineering team in April 2000. Astarte’s digital tool DVDirector was subsequently transformed into the professional-oriented DVD Studio Pro software product. Apple then employed the same technology to create iDVD for the consumer market.[68] In 2002, Apple purchased Nothing Real for their advanced digital compositing application Shake, as well as Emagic for the music productivity application Logic. The purchase of Emagic made Apple the first computer manufacturer to own a music software company. The acquisition was followed by the development of Apple’s consumer-level GarageBand application. The release of iPhoto in the same year completed the iLife suite.

Mac OS X, based on NeXT’s OPENSTEP and BSD Unix, was released on March 24, 2001, after several years of development. Aimed at consumers and professionals alike, Mac OS X aimed to combine the stability, reliability and security of Unix with the ease of use afforded by an overhauled user interface. To aid users in migrating from Mac OS 9, the new operating system allowed the use of OS 9 applications within Mac OS X via the Classic Environment.

On May 19, 2001, Apple opened its first official eponymous retail stores in Virginia and California. On October 23 of the same year, Apple debuted the iPod portable digital audio player. The product, which was first sold on November 10, 2001, was phenomenally successful with over 100 million units sold within six years. In 2003, Apple’s iTunes Store was introduced. The service offered online music downloads for $0.99 a song and integration with the iPod. The iTunes Store quickly became the market leader in online music services, with over five billion downloads by June 19, 2008. Two years later, the iTunes Store was the world’s largest music retailer.


 The MacBook Pro, Apple’s first laptop with an Intel microprocessor, introduced in 2006.

At the Worldwide Developers Conference keynote address on June 6, 2005, Jobs announced that Apple would begin producing Intel-based Mac computers in 2006. On January 10, 2006, the new MacBook Pro and iMac became the first Apple computers to use Intel’s Core Duo CPU. By August 7, 2006, Apple made the transition to Intel chips for the entire Mac product line—over one year sooner than announced.[80] The Power Mac, iBook and PowerBook brands were retired during the transition; the Mac Pro, MacBook, and MacBook Pro became their respective successors. On April 29, 2009, The Wall Street Journal reported that Apple was building its own team of engineers to design microchips.[83] Apple also introduced Boot Camp in 2006 to help users install Windows XP or Windows Vista on their Intel Macs alongside Mac OS X.

Apple’s success during this period was evident in its stock price. Between early 2003 and 2006, the price of Apple’s stock increased more than tenfold, from around $6 per share (split-adjusted) to over $80. In January 2006, Apple’s market cap surpassed that of Dell. Nine years prior, Dell’s CEO Michael Dell had said that if he ran Apple he would “shut it down and give the money back to the shareholders.” Although Apple’s market share in computers had grown, it remained far behind competitors using Microsoft Windows, accounting for about 8% of desktops and laptops in the US.

Since 2001, Apple’s design team has progressively abandoned the use of translucent colored plastics first used in the iMac G3. This design change began with the titanium-made PowerBook and was followed by the iBook’s white polycarbonate structure and the flat-panel iMac.

2007–11: Success with Mobile Devices


 A first generation iPhone, one of Jonathan Ive’s most recognized industrial designs. The iPhone has been phenomenally successful, with over 1 billion units sold worldwide.

During his keynote speech at the Macworld Expo on January 9, 2007, Jobs announced that Apple Computer, Inc. would thereafter be known as “Apple Inc.”, because the company had shifted its emphasis from computers to consumer electronics. This event also saw the announcement of the iPhone and the Apple TV. The company sold 270,000 iPhone units during the first 30 hours of sales, and the device was called “a game changer for the industry”. Apple would achieve widespread success with its iPhone, iPod Touch and iPad products, which introduced innovations in mobile phones, portable music players and personal computers respectively. Furthermore, by early 2007, 800,000 Final Cut Pro users were registered.

In an article posted on Apple’s website on February 6, 2007, Jobs wrote that Apple would be willing to sell music on the iTunes Store without digital rights management (DRM), thereby allowing tracks to be played on third-party players, if record labels would agree to drop the technology. On April 2, 2007, Apple and EMI jointly announced the removal of DRM technology from EMI’s catalog in the iTunes Store, effective in May 2007. Other record labels eventually followed suit and Apple published a press release in January 2009 to announce the corresponding changes to the iTunes Store.

In July 2008, Apple launched the App Store to sell third-party applications for the iPhone and iPod Touch. Within a month, the store sold 60 million applications and registered an average daily revenue of $1 million, with Jobs speculating in August 2008 that the App Store could become a billion-dollar business for Apple. By October 2008, Apple was the third-largest mobile handset supplier in the world due to the popularity of the iPhone.

On December 16, 2008, Apple announced that 2009 would be the last year the corporation would attend the Macworld Expo, after more than 20 years of attendance, and that senior vice president of Worldwide Product Marketing Phil Schiller would deliver the 2009 keynote address in lieu of the expected Jobs. The official press release explained that Apple was “scaling back” on trade shows in general, including Macworld Tokyo and the Apple Expo in Paris, France, primarily because the enormous successes of the Apple Retail Stores and website had rendered trade shows a minor promotional channel.

On January 14, 2009, Jobs announced in an internal memo that he would be taking a six-month medical leave of absence from Apple until the end of June 2009 and would spend the time focusing on his health. In the email, Jobs stated that “the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well”, and explained that the break would allow the company “to focus on delivering extraordinary products”. Despite Jobs’s absence, Apple recorded its best non-holiday quarter (Q1 FY 2009) during the recession with revenue of $8.16 billion and profit of $1.21 billion.

After years of speculation and multiple rumored “leaks”, Apple unveiled a large screen, tablet-like media device known as the iPad on January 27, 2010. The iPad ran the same touch-based operating system as the iPhone, and many iPhone apps were compatible with the iPad. This gave the iPad a large app catalog on launch, despite very little development time before the release. Later that year on April 3, 2010, the iPad was launched in the US. It sold more than 300,000 units on its first day, and 500,000 by the end of the first week. In May of the same year, Apple’s market cap exceeded that of competitor Microsoft for the first time since 1989.

In June 2010, Apple released the iPhone 4, which introduced video calling, multitasking, and a new uninsulated stainless steel design that acted as the phone’s antenna. Later that year, Apple again refreshed its iPod line of MP3 players by introducing a multi-touch iPod Nano, an iPod Touch with FaceTime, and an iPod Shuffle that brought back the buttons of earlier generations. Additionally, on October 20, Apple updated the MacBook Air laptop, iLife suite of applications, and unveiled Mac OS X Lion, the last version with the name Mac OS X.

In October 2010, Apple shares hit an all-time high, eclipsing $300.

On January 6, 2011, the company opened its Mac App Store, a digital software distribution platform similar to the iOS App Store.

Alongside peer entities such as Atari and Cisco Systems, Apple was featured in the documentary Something Ventured, which premiered in 2011 and explored the three-decade era that led to the establishment and dominance of Silicon Valley.

On January 17, 2011, Jobs announced in an internal Apple memo that he would take another medical leave of absence for an indefinite period to allow him to focus on his health. Chief Operating Officer Tim Cook assumed Jobs’s day-to-day operations at Apple, although Jobs would still remain “involved in major strategic decisions”. Apple became the most valuable consumer-facing brand in the world. In June 2011, Jobs surprisingly took the stage and unveiled iCloud, an online storage and syncing service for music, photos, files and software which replaced MobileMe, Apple’s previous attempt at content syncing.

This would be the last product launch Jobs would attend before his death. It has been argued that Apple has achieved such efficiency in its supply chain that the company operates as a monopsony (one buyer, many sellers) and can dictate terms to its suppliers. In July 2011, due to the American debt-ceiling crisis, Apple’s financial reserves were briefly larger than those of the U.S. Government.]

On August 24, 2011, Jobs resigned his position as CEO of Apple.[129] He was replaced by Cook and Jobs became Apple’s chairman. Prior to this, Apple did not have a chairman and instead had two co-lead directors, Andrea Jung and Arthur D. Levinson, who continued with those titles until Levinson became Chairman of the Board in November.

2011–Present: Post-Steve Jobs Era; Tim Cook Leadership

On October 5, 2011, Steve Jobs died, marking the end of an era for Apple. The first major product announcement by Apple following Jobs’s passing occurred on January 19, 2012, when Apple’s Phil Schiller introduced iBooks Textbooks for iOS and iBook Author for Mac OS X in New York City. Jobs had stated in his biography that he wanted to reinvent the textbook industry and education.

From 2011 to 2012, Apple released the iPhone 4S and iPhone 5, which featured improved cameras, an intelligent software assistant named Siri, and cloud-sourced data with iCloud; the third and fourth generation iPads, which featured Retina displays; and the iPad Mini, which featured a 7.9-inch screen in contrast to the iPad’s 9.7-inch screen. These launches were successful, with the iPhone 5 (released September 21, 2012) becoming Apple’s biggest iPhone launch with over two million pre-orders and sales of three million iPads in three days following the launch of the iPad Mini and fourth generation iPad (released November 3, 2012). Apple also released a third-generation 13-inch MacBook Pro with a Retina display and new iMac and Mac Mini computers.

On August 20, 2012, Apple’s rising stock price increased the company’s market capitalization to a world-record $624 billion. This beat the non-inflation-adjusted record for market capitalization set by Microsoft in 1999. On August 24, 2012, a US jury ruled that Samsung should pay Apple $1.05 billion (£665m) in damages in an intellectual property lawsuit. Samsung appealed the damages award, which the Court reduced by $450 million. The Court further granted Samsung’s request for a new trial. On November 10, 2012, Apple confirmed a global settlement that would dismiss all lawsuits between Apple and HTC up to that date, in favor of a ten-year license agreement for current and future patents between the two companies. It is predicted that Apple will make $280 million a year from this deal with HTC.

A previously confidential email written by Jobs a year before his death was presented during the proceedings of the Apple Inc. v. Samsung Electronics Co. lawsuits and became publicly available in early April 2014. With a subject line that reads “Top 100 – A,” the email was sent only to the company’s 100 most senior employees and outlines Jobs’s vision of Apple Inc.’s future under 10 subheadings. Notably, Jobs declares a “Holy War with Google” for 2011 and schedules a “new campus” for 2015.

In March 2013, Apple filed a patent for an augmented reality (AR) system that can identify objects in a live video stream and present information corresponding to these objects through a computer-generated information layer overlaid on top of the real-world image. The company also made several high-profile hiring decisions in 2013. On July 2, 2013, Apple recruited Paul Deneve, Belgian President and CEO of Yves Saint Laurent as a vice president reporting directly to Tim Cook. A mid-October 2013 announcement revealed that Burberry executive Angela Ahrendts will commence as a senior vice president at Apple in mid-2014. Ahrendts oversaw Burberry’s digital strategy for almost eight years and, during her tenure, sales increased to about US$3.2 billion and shares gained more than threefold.

Alongside Google vice-president Vint Cerf and AT&T CEO Randall Stephenson, Cook attended a closed-door summit held by President Obama on August 8, 2013, in regard to government surveillance and the Internet in the wake of the Edward Snowden NSA incident. On February 4, 2014, Cook met with Abdullah Gül, the President of Turkey, in Ankara to discuss the company’s involvement in the Fatih project.

In the first quarter of 2014, Apple reported sales of 51 million iPhones and 26 million iPads, becoming all-time quarterly sales records. It also experienced a significant year-over-year increase in Mac sales. This was contrasted with a significant drop in iPod sales. On May 28, 2014, Apple confirmed its intent to acquire Dr. Dre and Jimmy Iovine’s audio company Beats Electronics—producer of the Beats by Dr. Dre line of headphones and speaker products, and operator of the music streaming service Beats Music—for $3 billion, and to sell their products through Apple’s retail outlets and resellers. Iovine felt that Beats had always “belonged” with Apple, as the company modeled itself after Apple’s “unmatched ability to marry culture and technology.” In August 2014, an Apple representative confirmed to the media that Anand Lal Shimpi, editor and publisher of the AnandTech website, had been recruited by Apple without elaborating on Lal Shimpi’s role.

Apple has been at the top of Interbrand’s annual Best Global Brands report for 4 years in a row; 2013, 2014, 2015, and 2016, with a valuation of $178.1 billion.

In January 2016, it was announced that one billion Apple devices are in active use worldwide.

On May 12, 2016, Apple Inc., invested US$1 billion in Didi Chuxing, a Chinese competitor to Uber. The Information reported in October 2016 that Apple had taken a board seat in Didi Chuxing, a move that James Vincent of The Verge speculated could be a strategic company decision by Apple to get closer to the automobile industry, particularly Didi Chuxing’s reported interest in self-driving cars.

On June 6, 2016, Forbes released their list of companies ranked on revenue generation. In the trailing fiscal year, Apple appeared on the list as the top tech company. It ranked third, overall, with $233 billion in revenue. This represents a movement upward of two spots from the previous year’s list.

On April 6, 2017, Apple launched Clips, an app that allows iPad and iPhone users to make and edit videos. The app provides a way to produce short videos to share with other users on the Messages app, Instagram, Facebook and other social networks. Apple also introduced Live Titles for Clips that allows users to add live animated captions and titles using their voice.

Towards the end of May 2017, Apple refreshed two of its website designs. Its public relations “Apple Press Info” website was changed to a new “Apple Newsroom” site, featuring a greater emphasis on imagery and therefore lower information density, and combines press releases, news items and photos. Its “Apple Leadership” overview of company executives was also refreshed, adding a simpler layout with a prominent header image and two-column text fields. 9to5Mac noted the design similarities to several of Apple’s redesigned apps in iOS 10, particularly its Apple Music and News software.



Macs currently in production:

  • iMac: Consumer all-in-one desktop computer, introduced in 1998.
  • Mac Mini: Consumer sub-desktop computer, introduced in 2005.
  • MacBook: Consumer ultra-thin, ultra-portable notebook, introduced in 2006 and relaunched in 2015.
  • MacBook Pro: Professional notebook, introduced in 2006.
  • Mac Pro: Workstation desktop computer, introduced in 2006.
  • MacBook Air: Consumer ultra-thin, ultra-portable notebook, introduced in 2008.

Apple sells a variety of computer accessories for Macs, including Thunderbolt Display, Magic Mouse, Magic Trackpad, Magic Keyboard, the AirPort wireless networking products, and Time Capsule.



 From left to right: iPod Shuffle, iPod Nano, iPod Touch.

On October 23, 2001, Apple introduced the iPod digital music player. Several updated models have since been introduced, and the iPod brand is now the market leader in portable music players by a significant margin. More than 350 million units have shipped as of September 2012. Apple has partnered with Nike to offer the Nike+iPod Sports Kit, enabling runners to synchronize and monitor their runs with iTunes and the Nike+ website.

Apple currently sells only one version of the iPod, discontinuing the iPod Nano and iPod Shuffle in late July 2017.

iPod Touch: Portable media player that runs iOS and is currently available in 16, 32, 64, and 128 GB models, introduced in 2007. The current generation features the Apple A8 processor, a Retina Display, Siri and cameras on the front (1.2 megapixel sensor) and back (8 megapixel iSight). The latter camera supports HD video recording at 1080p and slow motion video at 120fps in 720p.]



 The first-generation iPhone, 3G, 4, 5, 5C and 5S to scale.

At the Macworld Conference & Expo in January 2007, Steve Jobs introduced the long-anticipated iPhone, a convergence of an Internet-enabled smartphone and iPod. The first-generation iPhone was released on June 29, 2007, for $499 (4 GB) and $599 (8 GB) with an AT&T contract. On February 5, 2008, it was updated to have 16 GB of memory, in addition to the 8 GB and 4 GB models. It combined a 2.5G quad band GSM and EDGE cellular phone with features found in handheld devices, running scaled-down versions of Apple’s Mac OS X (dubbed iPhone OS, later renamed iOS), with various Mac OS X applications such as Safari and Mail. It also includes web-based and Dashboard apps such as Google Maps and Weather. The iPhone features a 3.5-inch (89 mm) touchscreen display, Bluetooth, and Wi-Fi (both “b” and “g”).


 IPhone 7 and iPhone 7 Plus were introduced on September 7, 2016.

A second version, the iPhone 3G, was released on July 11, 2008, with a reduced price of $199 for the 8 GB version and $299 for the 16 GB version. This version added support for 3G networking and assisted-GPS navigation. The flat silver back and large antenna square of the original model were eliminated in favor of a glossy, curved black or white back. Software capabilities were improved with the release of the App Store, which provided iPhone-compatible applications to download. On April 24, 2009, the App Store surpassed one billion downloads. On June 8, 2009, Apple announced the iPhone 3GS. It provided an incremental update to the device, including faster internal components, support for faster 3G speeds, video recording capability, and voice control.

At the Worldwide Developers Conference (WWDC) on June 7, 2010, Apple announced the redesigned iPhone 4. It featured a 960 × 640 display, the Apple A4 processor, a gyroscope for enhanced gaming, a 5MP camera with LED flash, front-facing VGA camera and FaceTime video calling. Shortly after its release, reception issues were discovered by consumers, due to the stainless steel band around the edge of the device, which also serves as the phone’s cellular signal and Wi-Fi antenna. The issue was corrected by a “Bumper Case” distributed by Apple for free to all owners for a few months. In June 2011, Apple overtook Nokia to become the world’s biggest smartphone maker by volume. On October 4, 2011, Apple unveiled the iPhone 4S, which was first released on October 14, 2011.[190] It features the Apple A5 processor and Siri voice assistant technology, the latter of which Apple had acquired in 2010. It also features an updated 8MP camera with new optics. Apple began a new accessibility feature, Made for iPhone Hearing Aids with the iPhone 4S. Made for iPhone Hearing Aids feature Live Listen, it can help the user hear a conversation in a noisy room or hear someone speaking across the room. Apple sold 4 million iPhone 4S phones in the first three days of availability.

On September 12, 2012, Apple introduced the iPhone 5. It has a 4-inch display, 4G LTE connectivity, and the upgraded Apple A6 chip, among several other improvements. Two million iPhones were sold in the first twenty-four hours of pre-ordering and over five million handsets were sold in the first three days of its launch. Upon the launch of the iPhone 5S and iPhone 5C, Apple set a new record for first-weekend smartphone sales by selling over nine million devices in the first three days of its launch. The release of the iPhone 5S and 5C was the first time that Apple simultaneously launched two models.

A patent filed in July 2013 revealed the development of a new iPhone battery system that uses location data in combination with data on the user’s habits to moderate the handsets power settings accordingly. Apple is working towards a power management system that will provide features such as the ability of the iPhone to estimate the length of time a user will be away from a power source to modify energy usage and a detection function that adjusts the charging rate to best suit the type of power source that is being used.

In a March 2014 interview, Apple designer Jonathan Ive used the iPhone as an example of Apple’s ethos of creating high-quality, life-changing products. He explained that the phones are comparatively expensive due to the intensive effort that is used to make them:

We don’t take so long and make the way we make for fiscal reasons … Quite the reverse. The body is made from a single piece of machined aluminium … The whole thing is polished first to a mirror finish and then is very finely textured, except for the Apple logo. The chamfers [smoothed-off edges] are cut with diamond-tipped cutters. The cutters don’t usually last very long, so we had to figure out a way of mass-manufacturing long-lasting ones. The camera cover is sapphire crystal. Look at the details around the SIM-card slot. It’s extraordinary!

On September 9, 2014, Apple introduced the iPhone 6, alongside the iPhone 6 Plus that both have screen sizes over 4-inches. One year later, Apple introduced the iPhone 6S, and iPhone 6S Plus, which introduced a new technology called 3D Touch, including an increase of the rear camera to 12 MP, and the FaceTime camera to 5 MP. On March 21, 2016, Apple introduced the iPhone SE that has a 4-inch screen size last used with the 5S and has nearly the same internal hardware as the 6S.

In July 2016, Apple announced that one billion iPhones had been sold.

On September 7, 2016, Apple introduced the iPhone 7 and the iPhone 7 Plus, which feature improved system and graphics performance, add water resistance, a new rear dual-camera system on the 7 Plus model, and, controversially, remove the 3.5 mm headphone jack.



 iPad Air 2 in Gold

On January 27, 2010, Apple introduced their much-anticipated media tablet, the iPad. It offers multi-touch interaction with multimedia formats including newspapers, e-books, photos, videos, music, word processing documents, video games, and most existing iPhone apps using a 9.7-inch screen. It also includes a mobile version of Safari for web browsing, as well as access to the App Store, iTunes Library, iBookstore, Contacts, and Notes. Content is downloadable via Wi-Fi and optional 3G service or synced through the user’s computer. AT&T was initially the sole U.S. provider of 3G wireless access for the iPad.

On March 2, 2011, Apple introduced the iPad 2, which had a faster processor and a camera on the front and back. It also added support for optional 3G service provided by Verizon in addition to AT&T. The availability of the iPad 2 was initially limited as a result of a devastating earthquake and tsunami in Japan in March 2011.]

The third-generation iPad was released on March 7, 2012, and marketed as “the new iPad”. It added LTE service from AT&T or Verizon, an upgraded A5X processor, and Retina display. The dimensions and form factor remained relatively unchanged, with the new iPad being a fraction thicker and heavier than the previous version and featuring minor positioning changes.

On October 23, 2012, Apple’s fourth-generation iPad came out, marketed as the “iPad with Retina display”. It added the upgraded A6X processor and replaced the traditional 30-pin dock connector with the all-digital Lightning connector. The iPad Mini was also introduced. It featured a reduced 7.9-inch display and much of the same internal specifications as the iPad 2.

On October 22, 2013, Apple introduced the iPad Air and the iPad Mini with Retina Display, both featuring a new 64-bit Apple A7 processor.

The iPad Air 2 was unveiled on October 16, 2014. It added better graphics and central processing and a camera burst mode as well as minor updates. The iPad Mini 3 was unveiled at the same time.

Since its launch, iPad users have downloaded over three billion apps. The total number of App Store downloads, as of June 2015, is over 100 billion.

On September 9, 2015, Apple announced the iPad Pro, an iPad with a 12.9-inch display that supports two new accessories, the Smart Keyboard and Apple Pencil. An updated IPad Mini 4 was announced at the same time. A 9.7-inch iPad Pro was announced on March 21, 2016. On June 5, 2017, Apple announced a new iPad Pro with a 10.5-inch display to replace the 9.7 inch model and an updated 12.9-inch model.

Apple Watch


 The Apple Watch quickly became the best-selling wearable device, with the shipment of 11.4 million smart watches in the first half of 2015, according to analyst firm Canalys.

The Apple Watch smartwatch was announced by Cook on September 9, 2014, and released on April 24, 2015. The wearable device consists of fitness-tracking capabilities that are similar to Fitbit, and must be used in combination with an iPhone to work (only the iPhone 5, or later models, are compatible with the Apple Watch).

The second generation of Apple Watch, Apple Watch Series 2 and Apple Watch Series 1 were released in September 2016.

Apple TV

At the 2007 Macworld conference, Jobs demonstrated the Apple TV (previously known as the iTV), a set-top video device intended to bridge the sale of content from iTunes with high-definition televisions. The device links up to a user’s TV and syncs, either via Wi-Fi or a wired network, with one computer’s iTunes library and streams content from an additional four. The Apple TV originally incorporated a 40 GB hard drive for storage, included outputs for HDMI and component video, and played video at a maximum resolution of 720p. On May 31, 2007, a 160 GB hard disk drive was released alongside the existing 40 GB model. A software update released on January 15, 2008, allowed media to be purchased directly from the Apple TV.

In September 2009, Apple discontinued the original 40 GB Apple TV and now continues to produce and sell the 160 GB Apple TV. On September 1, 2010, Apple released a completely redesigned Apple TV. The new device is 1/4 the size, runs quieter, and replaces the need for a hard drive with media streaming from any iTunes library on the network along with 8 GB of flash memory to cache media downloaded. Like the iPad and the iPhone, Apple TV runs on an A4 processor. The memory included in the device is half of that in the iPhone 4 at 256 MB; the same as the iPad, iPhone 3GS, third and fourth-generation iPod Touch.

It has HDMI out as the only video out source. Features include access to the iTunes Store to rent movies and TV shows (purchasing has been discontinued), streaming from internet video sources, including YouTube and Netflix, and media streaming from an iTunes library. Apple also reduced the price of the device to $99. A third generation of the device was introduced at an Apple event on March 7, 2012, with new features such as higher resolution (1080p) and a new user interface.

At the September 9, 2015, event, Apple unveiled an overhauled Apple TV, which now runs a variant of macOS, called tvOS, and contains 32GB or 64 GB of NAND Flash to store games, programs, and to cache the current media playing. The release also coincided with the opening of a separate Apple TV App Store and a new Siri Remote with a glass touchpad, gyroscope, and microphone.



 Apple Worldwide Developers Conference is held annually by Apple to showcase its new software and technologies for software developers.

Apple develops its own operating systems to run on its devices, including macOS for Mac personal computers, iOS for its iPhone, iPad and iPod Touch smartphones and tablets, watchOS for its Apple Watch smartwatches, and tvOS for its Apple TV digital media player.

For iOS and macOS, Apple also develops its own software titles, including Pages for writing, Numbers for spreadsheets, and Keynote for presentations, as part of its iWork productivity suite. For macOS, it also offers iMovie and Final Cut Pro X for video editing, and GarageBand and Logic Pro X for music creation.

Apple’s range of server software includes the operating system macOS Server; Apple Remote Desktop, a remote systems management application; and Xsan, a storage area network file system.

Apple also offers online services with iCloud, which provides cloud storage and synchronization for a wide range of user data, including documents, photos, music, device backups, and application data, and Apple Music, its music and video streaming service.

Electric Vehicles

According to the Sydney Morning Herald, Apple wants to start producing an electric car with autonomous driving as soon as 2020. Apple has made efforts to recruit battery development engineers and other electric automobile engineers from A123 Systems, LG Chem, Samsung Electronics, Panasonic, Toshiba, Johnson Controls and Tesla Motors.

Apple Energy

Apple Energy, LLC is a wholly owned subsidiary of Apple Inc. that sells solar energy. As of June 6, 2016, Apple’s solar farms in California and Nevada have been declared to provide 217.9 megawatts of solar generation capacity. In addition to the company’s solar energy production, Apple has received regulatory approval to construct a landfill gas energy plant in North Carolina. Apple will use the methane emissions to generate electricity. Apple’s North Carolina data center is already powered entirely with energy from renewable sources.

Corporate Identity



First Apple logo (April 1, 1976)


First official Apple logo used from April 1977 to 1998


Apple logo 1998–2003


Current Apple logo since 2003

According to Steve Jobs, the company’s name was inspired by his visit to an apple farm while on a fruitarian diet. Jobs thought the name “Apple” was “fun, spirited and not intimidating”.

Apple’s first logo, designed by Ron Wayne, depicts Sir Isaac Newton sitting under an apple tree. It was almost immediately replaced by Rob Janoff’s “rainbow Apple”, the now-familiar rainbow-colored silhouette of an apple with a bite taken out of it. Janoff presented Jobs with several different monochromatic themes for the “bitten” logo, and Jobs immediately took a liking to it. However, Jobs insisted that the logo be colorized to humanize the company. The logo was designed with a bite so that it would not be confused with a cherry. The colored stripes were conceived to make the logo more accessible, and to represent the fact the Apple II could generate graphics in color. This logo is often erroneously referred to as a tribute to Alan Turing, with the bite mark a reference to his method of suicide. Both Janoff and Apple deny any homage to Turing in the design of the logo.

On August 27, 1999 (the year following the introduction of the iMac G3), Apple officially dropped the rainbow scheme and began to use monochromatic logos nearly identical in shape to the previous rainbow incarnation. An Aqua-themed version of the monochrome logo was used from 1998 to 2003, and a glass-themed version was used from 2007 to 2013.

Steve Jobs and Steve Wozniak were Beatles fans, but Apple Inc. had name and logo trademark issues with Apple Corps Ltd., a multimedia company started by the Beatles in 1967. This resulted in a series of lawsuits and tension between the two companies. These issues ended with settling of their most recent lawsuit in 2007.


Apple’s first slogan, “Byte into an Apple”, was coined in the late 1970s. From 1997 to 2002, the slogan “Think Different” was used in advertising campaigns, and is still closely associated with Apple. Apple also has slogans for specific product lines — for example, “iThink, therefore iMac” was used in 1998 to promote the iMac, and “Say hello to iPhone” has been used in iPhone advertisements. “Hello” was also used to introduce the original Macintosh, Newton, iMac (“hello (again)”), and iPod.

From the introduction of the Macintosh in 1984 with the 1984 Super Bowl commercial to the more modern ‘Get a Mac’ adverts, Apple has been recognized for its efforts towards effective advertising and marketing for its products. However, claims made by later campaigns were criticized, particularly the 2005 Power Mac ads. Apple’s product commercials gained a lot of attention as a result of their eye-popping graphics and catchy tunes. Musicians who benefited from an improved profile as a result of their songs being included on Apple commercials include Canadian singer Feist with the song “1234” and Yael Naïm with the song “New Soul”.

Brand Loyalty


 Apple aficionados wait in line around an Apple Store in anticipation of a new product.

Apple customers gained a reputation for devotion and loyalty early in the company’s history. BYTE in 1984 stated that

There are two kinds of people in the world: people who say Apple isn’t just a company, it’s a cause; and people who say Apple isn’t a cause, it’s just a company. Both groups are right. Nature has suspended the principle of noncontradiction where Apple is concerned.

Apple is more than just a company because its founding has some of the qualities of myth … Apple is two guys in a garage undertaking the mission of bringing computing power, once reserved for big corporations, to ordinary individuals with ordinary budgets. The company’s growth from two guys to a billion-dollar corporation exemplifies the American Dream. Even as a large corporation, Apple plays David to IBM’s Goliath, and thus has the sympathetic role in that myth.

Apple evangelists were actively engaged by the company at one time, but this was after the phenomenon had already been firmly established. Apple evangelist Guy Kawasaki has called the brand fanaticism “something that was stumbled upon,” while Ive explained in 2014 that “People have an incredibly personal relationship” with Apple’s products.

Apple Store openings and new product releases can draw crowds of hundreds, with some waiting in line as much as a day before the opening. The opening of New York City’s Fifth Avenue “Cube” store in 2006 became the setting of a marriage proposal, and had visitors from Europe who flew in for the event. In June 2017, a newlywed couple took their wedding photos inside the then-recently-opened Orchard Road Apple Store in Singapore.

The high level of brand loyalty has been criticized and ridiculed, applying the epithet “Apple fanboy” and mocking the lengthy lines before a product launch. An internal memo leaked in 2015 suggested the company planned to discourage long lines and direct customers to purchase its products on its website.

Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012. On September 30, 2013, Apple surpassed Coca-Cola to become the world’s most valuable brand in the Omnicom Group’s “Best Global Brands” report. Boston Consulting Group has ranked Apple as the world’s most innovative brand every year since 2005.

The New York Times in 1985 stated that “Apple above all else is a marketing company”. John Sculley agreed, telling The Guardian newspaper in 1997 that “People talk about technology, but Apple was a marketing company. It was the marketing company of the decade.” Research in 2002 by NetRatings indicate that the average Apple consumer was usually more affluent and better educated than other PC company consumers. The research indicated that this correlation could stem from the fact that on average Apple Inc. products were more expensive than other PC products.

In response to a query about the devotion of loyal Apple consumers, Jonathan Ive responded:

What people are responding to is much bigger than the object. They are responding to something rare—a group of people who do more than simply make something work, they make the very best products they possibly can. It’s a demonstration against thoughtlessness and carelessness.

Home Page

The Apple website home page has been used to commemorate, or pay tribute to, milestones and events outside of Apple’s product offerings:

  • 2017: Martin Luther King Jr.
  • 2016: Muhammad Ali
  • 2016: Bill Campbell (board member and friend)
  • 2016: Martin Luther King Jr.
  • 2014: Robin Williams
  • 2013: Nelson Mandela
  • 2011: Steve Jobs
  • 2010: Jerome B. York (board member)
  • 2007: Al Gore (board member in honor of his Nobel Peace Prize)
  • 2005: Rosa Parks
  • 2003: Gregory Hines
  • 2001: George Harrison


Apple Inc.’s world corporate headquarters are located in the middle of Silicon Valley, at 1–6 Infinite Loop, Cupertino, California. This Apple campus has six buildings that total 850,000 square feet (79,000 m2) and was built in 1993 by Sobrato Development Cos.

Apple has a satellite campus in neighboring Sunnyvale, California, where it houses a testing and research laboratory. AppleInsider published article in March 2014 claiming that Apple has a tucked away a top-secret facility where is developing the SG5 electric vehicle project codenamed “Titan” under the shell company name SixtyEight Research.

In 2006, Apple announced its intention to build a second campus in Cupertino about 1 mile (1.6 km) east of the current campus and next to Interstate 280. The new campus building has been designed by Norman Foster.[314] The Cupertino City Council approved the proposed “spaceship” design campus on October 15, 2013, after a 2011 presentation by Jobs detailing the architectural design of the new building and its environs. The new campus is planned to house up to 13,000 employees in one central, four-storied, circular building surrounded by extensive landscape. It will feature a café with room for 3,000 sitting people and parking underground as well as in a parking structure. The 2.8 million square foot facility will also include Jobs’s original designs for a fitness center and a corporate auditorium.

Apple has expanded its campuses in Austin, Texas concurrently with building Apple Park in Cupertino. The expansion consists of two locations, with one having 1.1 million square feet of workspace, and the other 216,000 square feet. At the biggest location, 6,000 employees work on technical support, manage Apple’s network of suppliers to fulfill product shipments, aid in maintaining iTunes Store and App Store, handle economy, and continuously update Apple Maps with new data. At its smaller campus, 500 engineers work on next-generation processor chips to run in future Apple products.

Apple’s headquarters for Europe, the Middle East and Africa (EMEA) are located in Cork in the south of Ireland. The facility, which opened in 1980, was Apple’s first location outside of the United States. Apple Sales International, which deals with all of Apple’s international sales outside of the USA, is located at Apple’s campus in Cork along with Apple Distribution International, which similarly deals with Apple’s international distribution network. On April 20, 2012, Apple added 500 new jobs at its European headquarters, increasing the total workforce from around 2,800 to 3,300 employees. The company will build a new office block on its Hollyhill Campus to accommodate the additional staff. Its United Kingdom headquarters is at Stockley Park on the outskirts of London.

In February 2015, Apple opened their new 180,000-square-foot headquarters in Herzliya, Israel, which will accommodate approximately 800 employees. This opening was Apple’s third office located within Israel; the first, also in Herzliya, was obtained as part of the Anobit acquisition, and the other is a research center in Haifa.

In December 2015, Apple bought the 70,000-square-foot manufacturing facility in North San Jose previously used by Maxim Integrated, in an $18.2 million deal.


The first Apple Stores were originally opened as two locations in May 2001 by then-CEO Steve Jobs, after years of attempting but failing store-within-a-store concepts. Seeing a need for improved retail presentation of the company’s products, he began an effort in 1997 to revamp the retail program to get an improved relationship to consumers, and hired Ron Johnson in 2000. Jobs relaunched Apple’s online store in 1997, and opened the first two physical stores in 2001. Despite initial media speculation that Apple would fail, its stores were highly successful, bypassing the sales numbers of competing nearby stores and within three years reached US$1 billion in annual sales, becoming the fastest retailer in history to do so. Over the years, Apple has expanded the number of retail locations and its geographical coverage, with 498 stores across 22 countries worldwide as of July 2017. Strong product sales have placed Apple among the top-tier retail stores, with sales over $16 billion globally in 2011.

In May 2016, Angela Ahrendts, Apple’s current Senior Vice President of Retail, unveiled a significantly redesigned Apple Store in Union Square, San Francisco, featuring large glass doors for the entry, open spaces, and rebranded rooms. In addition to purchasing products, consumers can get advice and help from “Creative Pros” – individuals with specialized knowledge of creative arts; get product support in a tree-lined Genius Grove; and attend sessions, conferences and community events, with Ahrendts commenting that the goal is to make Apple Stores into “town squares”, a place where people naturally meet up and spend time. The new design will be applied to all Apple Stores worldwide, a process that has seen stores temporarily relocate or close.

Many Apple Stores are located inside shopping malls, but Apple has built several stand-alone “flagship” stores in high-profile locations. It has been granted design patents and received architectural awards for its stores’ designs and construction, specifically for its use of glass staircases and cubes. The success of Apple Stores have had significant influence over other consumer electronics retailers, who have lost traffic, control and profits due to a perceived higher quality of service and products at Apple Stores. Apple’s notable brand loyalty among consumers causes long lines of hundreds of people at new Apple Store openings or product releases. Due to the popularity of the brand, there are numerous job applications, many of which from young workers. Although Apple Store employees receive above-average pay, are offered money toward education and health care, and receive product discounts, there are limited or no paths of career advancement. A May 2016 report with an anonymous retail employee highlighted a hostile work environment with harassment from customers, intense internal criticism, and a lack of significant bonuses for securing major business contracts.



From Wikipedia, the free encyclopedia


768px-HP_logo_2012.svgLast logo of Hewlett-Packard used from 2010 to 2015; now used by HP Inc.


HP headquarters in Palo Alto, California, U.S.


  • Former type: Public
  • Traded as: NYSE: HPQ
  • Industry:
    • Computer hardware
    • Computer software
    • IT services
    • IT consulting
  • Fate: Split into two companies
  • Successor: HP Inc., Hewlett Packard Enterprise
  • Founded: January 1, 1939; 78 years ago
  • Founders:
    • William Redington Hewlett and
    • David Packard
  • Defunct: November 1, 2015 (main company) (For Hewlett Packard Enterprise).
  • Now operating as HP Inc.
  • Headquarters: Palo Alto, California, U.S.
  • Area served: Worldwide
  • Products: See list of HP products.
  • Subsidiaries: List of subsidiaries
  • Website: www  dot hp dot  com

The Hewlett-Packard Company (commonly referred to as HP) or shortened to Hewlett-Packard (/ˈhjuːlɪt ˈpækərd/ HEW-lit PAK-erd) was an American multinational information technology company headquartered in Palo Alto, California. It developed and provided a wide variety of hardware components as well as software and related services to consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors.

The company was founded in a one-car garage in Palo Alto by William “Bill” Redington Hewlett and David “Dave” Packard, and initially produced a line of electronic test equipment. HP was the world’s leading PC manufacturer from 2007 to Q2 2013, after which Lenovo came to rank ahead of HP. It specialized in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Major product lines included personal computing devices, enterprise and industry standard servers, related storage devices, networking products, software and a diverse range of printers and other imaging products. HP marketed its products to households, small- to medium-sized businesses and enterprises directly as well as via online distribution, consumer-electronics and office-supply retailers, software partners and major technology vendors. HP also had services and consulting business around its products and partner products.

Hewlett-Packard company events included the spin-off of its electronic and bio-analytical measurement instruments part of its business as Agilent Technologies in 1999, its merger with Compaq in 2002, and the acquisition of EDS in 2008, which led to combined revenues of $118.4 billion in 2008 and a Fortune 500 ranking of 9 in 2009. In November 2009, HP announced the acquisition of 3Com, with the deal closing on April 12, 2010. On April 28, 2010, HP announced the buyout of Palm, Inc. for $1.2 billion. On September 2, 2010, HP won its bidding war for 3PAR with a $33 a share offer ($2.07 billion), which Dell declined to match.

On October 6, 2014, Hewlett-Packard announced plans to split the PC and printers business from its enterprise products and services business. The split closed on November 1, 2015, and resulted in two publicly traded companies: HP Inc. and Hewlett Packard Enterprise. In 2017, Hewlett Packard Enterprise spun-off its Enterprises Services division as DXC Technology and its Software division to Micro Focus.



 The garage in Palo Alto where Hewlett and Packard began their company


 Hewlett-Packard logo used from 1941 to 1964

William Redington Hewlett and David Packard graduated with degrees in electrical engineering from Stanford University in 1935. The company originated in a garage in nearby Palo Alto during a fellowship they had with a past professor, Frederick Terman at Stanford during the Great Depression. Terman was considered a mentor to them in forming Hewlett-Packard. In 1939, Packard and Hewlett established Hewlett-Packard (HP) in Packard’s garage with an initial capital investment of US$538. Hewlett and Packard tossed a coin to decide whether the company they founded would be called Hewlett-Packard or Packard-Hewlett. HP incorporated on August 18, 1947, and went public on November 6, 1957.

Of the many projects they worked on, their very first financially successful product was a precision audio oscillator, the Model HP200A. Their innovation was the use of a small incandescent light bulb (known as a “pilot light”) as a temperature dependent resistor in a critical portion of the circuit, the negative feedback loop which stabilized the amplitude of the output sinusoidal waveform. This allowed them to sell the Model 200A for $89.40 when competitors were selling less stable oscillators for over $200. The Model 200 series of generators continued until at least 1972 as the 200AB, still tube-based but improved in design through the years.

One of the company’s earliest customers was Walt Disney Productions which bought eight Model 200B oscillators (at $71.50 each) for use in certifying the Fantasound surround sound systems installed in theaters for the movie Fantasia.

They worked on counter-radar technology and artillery shell fuses during World War II, which allowed Packard (but not Hewlett) to be exempt from the draft.


HP is recognized as the symbolic founder of Silicon Valley, although it did not actively investigate semiconductor devices until a few years after the “traitorous eight” had abandoned William Shockley to create Fairchild Semiconductor in 1957. Hewlett-Packard’s HP Associates division, established around 1960, developed semiconductor devices primarily for internal use. Instruments and calculators were some of the products using these devices.

HP partnered in the 1960s with Sony and the Yokogawa Electric companies in Japan to develop several high-quality products. The products were not a huge success, as there were high costs in building HP-looking products in Japan. HP and Yokogawa formed a joint venture (Yokogawa-Hewlett-Packard) in 1963 to market HP products in Japan. HP bought Yokogawa Electric’s share of Hewlett-Packard Japan in 1999.

HP spun off a small company, Dynac, to specialize in digital equipment. The name was picked so that the HP logo “hp” could be turned upside down to be a reverse reflect image of the logo “dy” of the new company. Eventually Dynac changed to Dymec, then was folded back into HP in 1959. HP experimented with using Digital Equipment Corporation (DEC) minicomputers with its instruments, but after deciding that it would be easier to build another small design team than deal with DEC, HP entered the computer market in 1966 with the HP 2100 / HP 1000 series of minicomputers. These had a simple accumulator-based design, with registers arranged somewhat similarly to the Intel x86 architecture still used today. The series was produced for 20 years, in spite of several attempts to replace it, and was a forerunner of the HP 9800 and HP 250 series of desktop and business computers.



 Hewlett-Packard logo used from 1964 to 1979


 Introduced in 1968, “The new Hewlett-Packard 9100A personal computer is ready, willing, and able … to relieve you of waiting to get on the big computer.”

The HP 3000 was an advanced stack-based design for a business computing server, later redesigned with RISC technology. The HP 2640 series of smart and intelligent terminals introduced forms-based interfaces to ASCII terminals, and also introduced screen labeled function keys, now commonly used on gas pumps and bank ATMs. The HP 2640 series included one of the first bit mapped graphics displays that when combined with the HP 2100 21MX F-Series microcoded Scientific Instruction Set enabled the first commercial WYSIWYG Presentation Program, BRUNO that later became the program HP-Draw on the HP 3000. Although scoffed at in the formative days of computing, HP would eventually surpass even IBM as the world’s largest technology vendor, in terms of sales.

Although Programma 101 was the first commercial “desktop computer”, HP is identified by Wired magazine as the producer of the world’s first device to be called a personal computer, the Hewlett-Packard 9100A, introduced in 1968. Programma 101 was called “computer personale” (in Italian), at Fiera di Milano, 1966. HP called it a desktop calculator, because, as Bill Hewlett said, “If we had called it a computer, it would have been rejected by our customers’ computer gurus because it didn’t look like an IBM. We therefore decided to call it a calculator, and all such nonsense disappeared.” An engineering triumph at the time, the logic circuit was produced without any integrated circuits; the assembly of the CPU having been entirely executed in discrete components. With CRT display, magnetic-card storage, and printer, the price was around $5,000. The machine’s keyboard was a cross between that of a scientific calculator and an adding machine. There was no alphabetic keyboard.

Steve Wozniak, co-founder of Apple, originally designed the Apple I computer while working at HP and offered it to them under their right of first refusal to his work, but they did not take it up as the company wanted to stay in scientific, business, and industrial markets. Wozniak said that HP “turned him down 5 times.” Wozniak said his loyalty to HP made him hesitant to start Apple with Steve Jobs.

The company earned global respect for a variety of products. They introduced the world’s first handheld scientific electronic calculator in 1972 (the HP-35), the first handheld programmable in 1974 (the HP-65), the first alphanumeric, programmable, expandable in 1979 (the HP-41C), and the first symbolic and graphing calculator, the HP-28C. Like their scientific and business calculators, their oscilloscopes, logic analyzers, and other measurement instruments have a reputation for sturdiness and usability (the latter products are now part of spin-off Agilent’s product line). The company’s design philosophy in this period was summarized as “design for the guy at the next bench”.

The 98×5 series of technical desktop computers started in 1975 with the 9815, and the cheaper 80 series, again of technical computers, started in 1979 with the 85. These machines used a version of the BASIC programming language which was available immediately after they were switched on, and used a proprietary magnetic tape for storage. HP computers were similar in capabilities to the much later IBM Personal Computer, although the limitations of available technology forced prices to be high.



Hewlett-Packard logo used from 1979 to 2010

In 1984, HP introduced both inkjet and laser printers for the desktop. Along with its scanner product line, these have later been developed into successful multifunction products, the most significant being single-unit printer/scanner/copier/fax machines. The print mechanisms in HP’s tremendously popular LaserJet line of laser printers depend almost entirely on Canon Inc.’s components (print engines), which in turn use technology developed by Xerox. HP develops the hardware, firmware, and software that convert data into dots for the mechanism to print.

On March 3, 1986, HP registered the HP.com domain name, making it the ninth Internet .com domain ever to be registered.

In 1987, the Palo Alto garage where Hewlett and Packard started their business was designated as a California State historical landmark.


In the 1990s, HP expanded their computer product line, which initially had been targeted at university, research, and business users, to reach consumers. HP also grew through acquisitions. It bought Apollo Computer in 1989 and Convex Computer in 1995.

Later in the decade, HP opened hpshopping.com as an independent subsidiary to sell online, direct to consumers; in 2005, the store was renamed “HP Home & Home Office Store.”

From 1995 to 1998, Hewlett-Packard were sponsors of the English football team Tottenham Hotspur.

In 1999, all of the businesses not related to computers, storage, and imaging were spun off from HP to form Agilent Technologies. Agilent’s spin-off was the largest initial public offering in the history of Silicon Valley. The spin-off created an $8 billion company with about 30,000 employees, manufacturing scientific instruments, semiconductors, optical networking devices, and electronic test equipment for telecom and wireless R&D and production.

In July 1999, HP appointed Carly Fiorina as CEO, the first female CEO of a Fortune-20 company in the Dow Jones Industrial Average. Fiorina served as CEO during the technology downturn of the early 2000s. During her tenure, HP laid off 30,000 U.S. employees in order to save 80,000 jobs. The company then grew to 150,000 jobs. Under her leadership, the company doubled in size. The HP Board of Directors asked Fiorina to step down in 2005 following a boardroom disagreement, and she resigned on February 9, 2005. Tom Perkins, who as a board member led efforts to force Fiorina out, stated years later that doing so was a “mistake”.

Sales to Iran Despite Sanctions

In 1997, HP sold over $120 million worth of its printers and computer products to Iran through a European subsidiary and a Dubai-based East distributor, despite U.S. export sanctions prohibiting such deals imposed by Bill Clinton’s executive orders issued in 1995. The story was initially reported by The Boston Globe, and it triggered an inquiry by the SEC. HP responded that products worth US$120 million were sold in fiscal year 2008 for distribution by way of Redington Gulf, a company based in the Netherlands, and that as these sales took place through a foreign subsidiary, HP had not violated sanctions.

HP named Redington Gulf “Wholesaler of the Year” in 2003, which in turn published a press release stating that “[t]he seeds of the Redington-Hewlett-Packard relationship were sowed six years ago for one market — Iran.” At that time, Redington Gulf had only three employees whose sole purpose was to sell HP products to the Iran market. According to former officials who worked on sanctions, HP was using a loophole by routing their sales through a foreign subsidiary. HP ended its relationship with Redington Gulf after the SEC inquiry.



 Hewlett-Packard Deskjet 3845 printer

On September 3, 2001, HP announced that an agreement had been reached with Compaq to merge the two companies. In May 2002, after passing a shareholder vote, HP officially merged with Compaq. Prior to this, plans had been in place to consolidate the companies’ product teams and product lines.

Compaq had already taken over Digital Equipment Corporation in 1998. HP therefore still offers support for the former Digital Equipment products PDP-11, VAX and AlphaServer.

The merger occurred after a proxy fight with Bill Hewlett’s son Walter, who objected to the merger. Compaq itself had bought Tandem Computers in 1997 (which had been started by ex-HP employees), and Digital Equipment Corporation in 1998. Following this strategy, HP became a major player in desktops, laptops, and servers for many different markets. After the merger with Compaq, the new ticker symbol became “HPQ”, a combination of the two previous symbols, “HWP” and “CPQ”, to show the significance of the alliance and also key letters from the two companies Hewlett-Packard and Compaq (the latter company being famous for its “Q” logo on all of its products).

In 2004, HP released the DV 1000 Series, including the HP Pavilion dv 1658 and 1040 two years later in May 2006, HP began its campaign, “The Computer is Personal Again”. The campaign was designed to bring back the fact that the PC is a personal product. The campaign utilized viral marketing, sophisticated visuals and its own website (www.hp.com/personal). Some of the ads featured Pharrell, Petra Nemcova, Mark Burnett, Mark Cuban, Alicia Keys, Jay-Z, Gwen Stefani, and Shaun White.



 A sign marking the entrance to the HP corporate headquarters in Palo Alto, California, 2006

On May 13, 2008, HP and Electronic Data Systems (EDS) announced that they had signed a definitive agreement under which HP would purchase EDS. On June 30, HP announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 had expired. “The transaction still requires EDS stockholder approval and regulatory clearance from the European Commission and other non-U.S. jurisdictions and is subject to the satisfaction or waiver of the other closing conditions specified in the merger agreement.” The agreement was finalized on August 26, 2008 at $13 billion, and it was publicly announced that EDS would be re-branded “EDS a HP company.” The first targeted layoff of 24,600 former EDS workers was announced on September 15, 2008. (The company’s 2008 Annual Report gave the number as 24,700, to be completed by end of 2009.[44]) This round was factored into purchase price as a $19.5 billion liability against goodwill. As of September 23, 2009, EDS is known as HP Enterprise Services.


 iPAQ 112 Pocket PC from 2008

On November 11, 2009, 3Com and Hewlett-Packard announced that Hewlett-Packard would be acquiring 3Com for $2.7 billion in cash. The acquisition is one of the biggest in size among a series of takeovers and acquisitions by technology giants to push their way to become one-stop shops. Since the beginning of the financial crisis in 2007, tech giants have constantly felt the pressure to expand beyond their current market niches. Dell purchased Perot Systems recently to invade into the technology consulting business area previously dominated by IBM. Hewlett-Packard’s latest move marked its incursion into enterprise networking gear market dominated by Cisco.


On April 28, 2010, Palm, Inc. and Hewlett-Packard announced that HP would buy Palm for $1.2 billion in cash and debt. Before this announcement, it was rumored that either HTC, Dell, Research in Motion or HP would buy Palm. Adding Palm handsets to the HP product line created some overlap with the iPAQ series of mobile devices but was thought to significantly improve HP’s mobile presence as iPAQdevices had not been selling well. Buying Palm gave HP a library of valuable patents, as well as the mobile operating platform known as webOS. On July 1, 2010, the acquisition of Palm was final. The purchase of Palm’s webOS began a big gamble – to build HP’s own ecosystem. On July 1, 2011, HP launched its first tablet named HP TouchPad, bringing webOS to tablet devices. On September 2, 2010, HP won its bidding war for 3PAR with a $33 a share offer ($2.07 billion) which Dell declined to match. After HP’s acquisition of Palm, it phased out the Compaq brand.

On August 6, 2010, CEO Mark Hurd resigned amid controversy and CFO Cathie Lesjak assumed the role of interim CEO. Hurd had turned HP around and was widely regarded as one of Silicon Valley’s star CEOs, but was accused of sexual harassment against a colleague. Although the allegations were deemed baseless, the investigation led to questions concerning between $1000 and $20000 of his private expenses and his lack of disclosure related to the friendship. Some observers have argued that Hurd was innocent, but the board asked for his resignation to avoid negative PR. Public analysis was divided between those who saw it as a commendable tough action by HP in handling expenses irregularities, and those who saw it as an ill-advised, hasty and expensive reaction, in ousting a remarkably capable leader who had turned the business around. Shares of HP dropped by 8.4% in after-hours trading, hitting a 52-week low with $9 billion in market capitalization shaved off. Larry Ellison publicly attacked HP’s board for his ousting.

On September 30, 2010, Léo Apotheker was named as HP’s new CEO and President. Apotheker’s appointment sparked a strong reaction from Oracle chief executive Larry Ellison, who complained that Apotheker had been in charge of SAP when one of its subsidiaries was systematically stealing software from Oracle. SAP accepted that its subsidiary, which has now closed, illegally accessed Oracle intellectual property. Following Hurd’s departure, HP was seen by the market as problematic, with margins falling and having failed to redirect and establish itself in major new markets such as cloud and mobile services.

Apotheker’s strategy was broadly to aim at disposing of hardware and moving into the more profitable software services sector. On August 18, 2011, HP announced that it would strategically exit the smartphone and tablet computer business, focusing on higher-margin “strategic priorities of Cloud, solutions and software with an emphasis on enterprise, commercial and government markets” They also contemplated selling off their personal computer division or spinning it off into a separate company, quitting the ‘PC’ business, while continuing to sell servers and other equipment to business customers, was a strategy already undertaken by IBM in 2005.

HP’s stock continued to drop, by about a further 40% (including 25% on one day, August 19, 2011), after the company abruptly announced a number of decisions: to discontinue its webOS device business (mobile phones and tablet computers), the intent to sell its personal computer division (at the time HP was the largest personal computer manufacturer in the world), and to acquire British big data software firm Autonomy for a 79% premium, seen externally as an “absurdly high” price for a business with known concerns over its accounts. Media analysts described HP’s actions as a “botched strategy shift” and a “chaotic” attempt to rapidly reposition HP and enhance earnings that ultimately cost Apotheker his job. The Autonomy acquisition had been objected to even by HP’s own CFO.

On September 22, 2011, the HP Board of Directors fired Apotheker as chief executive, effective immediately, and replaced him with fellow board member and former eBay chief Meg Whitman, with Raymond J. Lane as executive chairman. Though Apotheker served barely ten months, he received over $13 million in compensation. HP lost more than $30 billion in market capitalization during his tenure. Weeks later, HP announced that a review had concluded their PC division was too integrated and critical to business operations, and the company reaffirmed their commitment to the Personal Systems Group. A year later in November 2012 wrote-down almost $9 billion related to the Autonomy acquisition (see below: Takeover of Autonomy), which became the subject of intense litigation as HP accused Autonomy’s previous management of fraudulently exaggerating Autonomy’s financial position and called in law enforcement and regulators in both countries, and Autonomy’s previous management accused HP of “textbook” obfuscation and finger pointing to protect HP’s executives from criticism and conceal HP culpability, their prior knowledge of Autonomy’s financial position, and gross mismanagement of Autonomy after acquisition.

On March 21, 2012, HP said its printing and PC divisions would become one unit headed by Todd Bradley from the PC division. Printing chief Vyomesh Joshi is leaving the company.

On May 23, 2012, HP announced plans to lay off approximately 27,000 employees, after posting a profit decline of 31% in the second quarter of 2012. The profit decline is on account of the growing popularity of smart phones, tablets, and other mobile devices, that has slowed the sale of personal computers.

On May 30, 2012, HP unveiled its first net zero energy data center. HP data center plans to use solar energy and other renewable sources instead of traditional power grids.

On July 10, 2012, HP’s Server Monitoring Software was discovered to have a previously unknown security vulnerability. A security warning was given to customers about two vulnerabilities, and a patch released. One month later, HP’s official site of training center was hacked and defaced by a Pakistani hacker known to as ‘Hitcher’ to demonstrate a web vulnerability.

On September 10, 2012, HP revised their restructuring figures; they are now cutting 29,000 jobs. HP had already cut 3,800 jobs – around 7 percent of the revised 29,000 figure – as of July 2012.


On December 31, 2013, HP revised the amount of jobs cut from 29,000 to 34,000 up to October 2014. The current amount of jobs cut until the end of 2013 was 24,600. At the end of 2013 the company had 317,500 employees. On May 22, 2014 HP announced it would cut a further 11,000 to 16,000 jobs, in addition to the 34,000 announced in 2013. “We are gradually shaping HP into a more nimble, lower-cost, more customer and partner-centric company that can successfully compete across a rapidly changing IT landscape,” CEO Meg Whitman said at the time.

In June 2014, during the HP Discover customer event in Las Vegas, Meg Whitman and Martin Fink announced a project for a radically new computer architecture called The Machine. Based on memristors and silicon photonics, The Machine is supposed to come in commercialization before the end of the decade, meanwhile representing 75% of the research activity in HP Labs.

On October 6, 2014, Hewlett-Packard announced it was planning to split into two separate companies, separating its personal computer and printer businesses from its technology services. The split, which was first reported by The Wall Street Journal and confirmed by other media, would result in two publicly traded companies: Hewlett Packard Enterprise and HP Inc. Meg Whitman would serve as chairman of HP Inc. and CEO of Hewlett Packard Enterprise, Patricia Russo would be chairman of the enterprise business, and Dion Weisler would be CEO of HP, Inc.

On October 29, 2014, Hewlett-Packard announced their new Sprout personal computer.

In May 2015, the company announced it would be selling its controlling 51 percent stake in its Chinese data-networking business to Tsinghua Unigroup for a fee of at least $2.4 billion.

On November 1, 2015, as previously announced, Hewlett-Packard legally ceased to exist and split into two companies, HP Inc. and Hewlett Packard Enterprise. HP Inc. is the legal successor of the old Hewlett-Packard; the split was structured so that Hewlett-Packard changed its name to HP Inc. and spun off Hewlett Packard Enterprise as a new publicly traded company. HP Inc. retains Hewlett-Packard’s stock price history and its stock ticker symbol, HPQ, while Hewlett Packard Enterprise trades under its own symbol, HPE.



 The research center of Hewlett-Packard in the Paris-Saclay cluster, France.

HP’s global operations are directed from its headquarters in Palo Alto, California, USA. Its U.S. operations are directed from its facility in unincorporated Harris County, Texas, near Houston. Its Latin America offices are in unincorporated Miami-Dade County, Florida, U.S., near Miami; Its Europe offices are in Meyrin, Switzerland, near Geneva, but it has also a research center in the Paris-Saclay cluster, 20 km south of Paris, France. Its Asia-Pacific offices are in Singapore.

It also has large operations in Leixlip, Ireland; Austin, Texas; Boise, Idaho; Corvallis, Oregon; Fort Collins, Colorado; Roseville, California; Saint Petersburg, Florida; San Diego, California; Tulsa, Oklahoma; Vancouver, Washington; and Plano, Texas (the former headquarters of EDS, which HP acquired). In the UK, HP is based at a large site in Bracknell, Berkshire with offices in various UK locations, including a landmark office tower in London, 88 Wood Street. Its recent acquisition of 3Com will expand its employee base to Marlborough, Massachusetts. The company also has a large workforce and numerous offices in Bucharest, Romania and at Bangalore, India, to address their back end and IT operations. MphasiS, which is headquartered at Bangalore, also enabled HP to increase their footprint in the city as it was a subsidiary of EDS which the company acquired.

Products and Organizational Structure


 HP office in Japan

HP produces lines of printers, scanners, digital cameras, calculators, PDAs, servers, workstation computers, and computers for home and small-business use; many of the computers came from the 2002 merger with Compaq. HP as of 2001 promotes itself as supplying not just hardware and software, but also a full range of services to design, implement, and support IT infrastructure.


HP Presario F700 F767CL

HP’s Imaging and Printing Group (IPG) was described by the company in 2005 as “the leading imaging and printing systems provider in the world for printer hardware, printing supplies and scanning devices, providing solutions across customer segments from individual consumers to small and medium businesses to large enterprises”.


 iPAQ h4150 Pocket PC from 2003


 An HP camera with an SDIO interface, designed for use in conjunction with a Pocket PC

Products and Technology Associated with IPG include:

  • Inkjet and LaserJet printers
  • consumables and related products
  • Officejet all-in-one multifunction printer/scanner/faxes
  • Designjet and Scitex Large Format Printers
  • Indigo Digital Press
  • HP Web Jetadmin printer management software
  • HP Output Management suite of software
  • LightScribe optical recording technology
  • HP Photosmart digital cameras and photo printers
  • HP SPaM
  • Snapfish by HP, a photo sharing and photo products service.

On December 23, 2008, HP released iPrint Photo for iPhone, a free downloadable software application that allows the printing of 4″ x 6″ photos.

HP’s Personal Systems Group (PSG) claims to be “one of the leading vendors of personal computers (“PCs”) in the world based on unit volume shipped and annual revenue.”

PSG deals with:

  • business PCs and accessories
  • consumer PCs and accessories, (e.g., HP Pavilion, Compaq Presario, VoodooPC)
  • handheld computing (e.g., iPAQ Pocket PC)
  • digital “connected” entertainment (e.g., HP MediaSmart TVs, HP MediaSmart
  • Servers, HP MediaVaults, DVD+RW drives)

HP resold the Apple iPod until November 2005.

HP Enterprise Business (EB) incorporates HP Technology Services, Enterprise Services (an amalgamation of the former EDS, and what was known as HP Services), HP Enterprise Security Services oversees professional services such as network security, information security and information assurance/ compliancy, HP Software Division, and Enterprise Servers, Storage and Networking Group (ESSN). The Enterprise Servers, Storage and Networking Group (ESSN) oversees “back end” products like storage and servers. HP Networking (former ProCurve) is responsible for the NW family of products. They are a business unit of ESSN.

HP Software Division is the company’s enterprise software unit. For years,[when?] HP has produced and marketed its brand of enterprise-management software, HP OpenView. From September 2005 HP purchased several software companies as part of a publicized, deliberate strategy to augment its software offerings for large business customers.

HP Software sells several categories of software, including:

  • business service management software
  • application lifecycle management software
  • mobile apps
  • big data and analytics
  • service and portfolio management software
  • automation and orchestration software
  • enterprise security softwareArcSight
  • Fortify Software
  • Atalla
  • TippingPoint

HP Software also provides software as a service (SaaS), cloud computing solutions, and software services, including consulting, education, professional services, and support.

HP’s Office of Strategy and Technology has four main functions:

  • steering the company’s $3.6 billion research and development investment
  • fostering the development of the company’s global technical community
  • eading the company’s strategy and corporate development efforts,
  • erforming worldwide corporate marketing activities

Under the Office of Strategy and Technology comes HP Labs, the research arm of HP. Founded in 1966, HP Labs aims to deliver new technologies and to create business opportunities that go beyond HP’s current strategies. Examples of recent HP Labs technology includes the Memory spot chip of 2006. HP IdeaLab further provides a web forum on early-state innovations to encourage open feedback from consumers and the development community.

HP also offers managed services by which they provide complete IT-support solutions for other companies and organizations.

Some examples of these include:

  • offering “Professional Support” and desktop “Premier Support” for Microsoft in the EMEA marketplace. This is done from the Leixlip campus near Dublin, Sofia and Israel. Support is offered on the line of Microsoft operation systems,
  • Exchange, Sharepoint and some office-applications.
  • outsourced services for companies like Bank of Ireland, some UK banks, the U.S. defense forces.
  • the computerisation project at Cambridge University Hospitals NHS Foundation Trust.

Staff and Culture

The founders developed a management style that came to be known as “The HP Way.” In Hewlett’s words, the HP Way is “a core ideology … which includes a deep respect for the individual, a dedication to affordable quality and reliability, a commitment to community responsibility, and a view that the company exists to make technical contributions for the advancement and welfare of humanity.”

The following are the tenets of The HP Way:

  • We have trust and respect for individuals.
  • We focus on a high level of achievement and contribution.
  • We conduct our business with uncompromising integrity.
  • We achieve our common objectives through teamwork.
  • We encourage flexibility and innovation.

Notable People

  • Michael Capellas (Compaq CEO/Chairman – HP President)[107]
  • Barney Oliver, founder and director of HP laboratories
  • Steve Wozniak
  • Tom Perkins
  • Carly Fiorina, 2016 Republican presidential candidate
  • Matt Shaheen, management consultant executive at HP Enterprise Services in
  • Plano, Texas; Republican member of the Texas House of Representatives
  • List of HP Chairmen and CEOs
  • John Schultz (HP Lawyer – Oracle Lawsuit)

Corporate Social Responsibility

In July 2007, the company announced that it had met its target, set in 2004, to recycle one billion pounds of electronics, toner and ink cartridges. It set a new goal of recycling a further two billion pounds of hardware by the end of 2010. In 2006, the company recovered 187 million pounds of electronics, 73 percent more than its closest competitor.

In 2008, HP released its supply chain emissions data — an industry first.

In September 2009, Newsweek ranked HP No. 1 on its 2009 Green Rankings of America’s 500 largest corporations. According to environmentalleader.com, “Hewlett-Packard earned its number one position due to its greenhouse gas (GHG) emission reduction programs, and was the first major IT company to report GHG emissions associated with its supply chain, according to the ranking. In addition, HP has made an effort to remove toxic substances from its products, though Greenpeace has targeted the company for not doing better.”

HP took the top spot on Corporate Responsibility Magazine’s 100 Best Corporate Citizens List for 2010. The list is cited by PR Week as one of America’s most important business rankings. HP beat out other Russell 1000 Index companies because of its leadership in seven categories including environment, climate changes and corporate philanthropy. In 2009, HP was ranked fifth.

Fortune magazine named HP one of the World’s Most Admired Companies in 2010, placing it No. 2 in the computer industry and No. 32 overall in its list of the top 50. This year in the computer industry HP was ranked No. 1 in social responsibility, long-term investment, global competitiveness, and use of corporate assets.

In May 2011, HP released a Global Responsibility report covering accomplishments during 2010. The report, the company’s tenth, provides a comprehensive view of HP’s global citizenship programs, performance, and goals and describes how HP uses its technology, influence, and expertise to make a positive impact on the world. The company’s 2009 report won best corporate responsibility report of the year. The 2009 reports claims HP decreased its total energy use by 9 percent compared with 2008. HP recovered a total of 118,000 tonnes of electronic products and supplies for recycling in 2009, including 61 million print cartridges.

In an April 2010 San Francisco Chronicle article, HP was one of 12 companies commended for “designing products to be safe from the start, following the principles of green chemistry.” The commendations came from Environment California, an environmental advocacy group, who praised select companies in the Golden State and the Bay Area for their efforts to keep our planet clean and green.

In May 2010, HP was named one of the World’s Most Ethical Companies by Ethisphere Institute. This is the second year in a row HP has made the list. Ethisphere reviewed, researched and analyzed thousands of nominations in more than 100 countries and 35 industries to create the 2010 list. HP was one of only 100 companies to earn the distinction of top winner and was the only computer hardware vendor to be recognized. Ethisphere honors firms that promote ethical business standards and practices by going beyond legal minimums, introducing innovative ideas that benefit the public.

HP is listed in Greenpeace’s Guide to Greener Electronics that ranks electronics manufacturers according to their policies on sustainability, energy and climate and green products. In November 2011, HP secured the 1st place (out of 15) in this ranking (climbing up 3 places) with an increased score of 5.9 (up from 5.5). It scored most points on the new Sustainable Operations criteria, having the best program for measuring and reducing emissions of greenhouse gases from its suppliers and scoring maximum points for its thorough paper procurement policy. In the November 2012 report, HP was ranked second, with a score of 5.7.

HP does especially well for its disclosure of externally verified greenhouse gas emissions and its setting of targets for reducing them. However, Greenpeace reports that HP risks a penalty point in future editions due to the fact that it is a member of trade associations that have commented against energy efficiency standards.

HP has earned recognition of its work in the area of data privacy and security. In 2010 the company ranked No. 4 in the Ponemon Institute’s annual study of the most trusted companies for privacy. Since 2006, HP has worked directly with the U.S. Congress, the Federal Trade Commission (FTC), and the Department of Commerce to establish a new strategy for federal legislation. HP played a key role in work toward the December 2010 FTC report “Protecting Consumer Privacy in an Era of Rapid Change.”

After winning nine straight annual “Most Respected Company in China” awards from the Economic Observer and Peking University, HP China has added the “10 Year Contribution” award to its list of accolades. The award aims to identify companies doing business in China with outstanding and sustained performance in business operations, development and corporate social responsibility.

In its 2012 rankings of consumer electronics companies on progress relating to conflict minerals, the Enough Project rated HP second out of 24 companies, calling it a “Pioneer of progress”.


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 The company sponsored the HP Pavilion at San Jose (now SAP Center at San Jose), home to the NHL’s San Jose Sharks.

According to a BusinessWeek Study, HP was the world’s 11th most valuable brand as of 2009.


HP has many sponsorships. One well known sponsorship is Mission: SPACE in Epcot at the Walt Disney World Resort. From 1995 to 1999, and again from 2013, HP has been the shirt sponsor of Premier League club Tottenham Hotspur F.C.[citation needed] From 1997 to 1999 they were sponsors of Australian Football League club North Melbourne Football Club.[citation needed] They also sponsored the BMW Williams Formula 1 team until 2005 (a sponsorship formerly held by Compaq), and as of 2010 sponsor Renault F1. Hewlett-Packard also had the naming rights arrangement for the HP Pavilion at San Jose, home of the San Jose Sharks NHL hockey team until 2013, in which the arena’s naming rights were acquired by SAP AG, renaming the arena to the SAP Center at San Jose. The company also maintains a number of corporate sponsorships in the business sector, including sponsorships of trade organisations including Fespa (print trade exhibitions), and O’Reilly Media’s Velocity (web development) conference.

After the acquisition of Compaq in 2002, HP has maintained the “Compaq Presario” brand on low-end home desktops and laptops, the “HP Compaq” brand on business desktops and laptops, and the “HP ProLiant” brand on Intel-architecture servers. (The “HP Pavilion” brand is used on home entertainment laptops and all home desktops.)

Tandem’s “NonStop” servers are now branded as “HP Integrity NonStop”.

HP Discover Customer Event

In 2011, HP Enterprise Business, along with participating independent user groups, combined its annual HP Software Universe, HP Technology Forum and HP Technology@Work into a single event, HP Discover. There are two HP Discover events annually, one for the Americas and one for Europe, Middle East and Africa (EMEA). HP Discover 2011 Americas took place June 6–10, in Las Vegas at the Venetian/Palazzo. The company demonstrated the webOS TouchPad, introduced July 1, 2011.

The HP Discover 2011 event in EMEA took place in Vienna, Austria, on November 29 through December 1, 2011.



In March 2003, HP restated its first-quarter cash flow from operations, reducing it 18 percent because of an accounting error. Actual cash flow from operations was $647 million, not $791 million as reported earlier. HP shifted $144 million to net cash used in investing activities.

Spying Scandal

On September 5, 2006, Shawn Cabalfin and David O’Neil of Newsweek wrote that HP’s general counsel, at the behest of chairwoman Patricia Dunn, contracted a team of independent security experts to investigate board members and several journalists in order to identify the source of an information leak. In turn, those security experts recruited private investigators who used a spying technique known as pretexting. The pretexting involved investigators impersonating HP board members and nine journalists (including reporters for CNET, The New York Times and The Wall Street Journal) in order to obtain their phone records. The information leaked related to HP’s long-term strategy and was published as part of a CNET article[146] in January 2006. Most HP employees accused of criminal acts have since been acquitted.


In November 2007, Hewlett-Packard released a BIOS update covering a wide range of laptops with the intent to speed up the computer fan as well as have it run constantly, whether the computer was on or off. The reason was to prevent the overheating of defective Nvidia graphics processing units (GPUs) that had been shipped to many of the original equipment manufacturers, including Hewlett-Packard, Dell, and Apple. The defect concerned the new packaging material used by Nvidia from 2007 onwards in joining the graphics chip onto the motherboard, which did not perform well under thermal cycling and was prone to develop stress cracks – effectively severing the connection between the GPU and the motherboard, leading to a blank screen. In July 2008, HP issued an extension to the initial one-year warranty to replace the motherboards of selected models. However this option was not extended to all models with the defective Nvidia chipsets despite research showing that these computers were also affected by the fault. Furthermore, the replacement of the motherboard was a temporary fix, since the fault was inherent in all units of the affected models from the point of manufacture, including the replacement motherboards offered by HP as a free ‘repair’. Since this point, several websites have been documenting the issue, most notably http://www.hplies.com, a forum dedicated to what they refer to as Hewlett-Packard’s “multi-million dollar cover up” of the issue, and http://www.nvidiadefect.com, which details the specifics of the fault and offers advice to the owners of affected computers. There have been several small-claims lawsuits filed in several states, as well as suits filed in other countries. Hewlett-Packard also faced a class-action lawsuit in 2009 over its i7 processor computers. The complainants stated that their systems locked up within 30 minutes of powering on, consistently. Even after being replaced with newer i7 systems, the lockups continued.

Lawsuit Against Oracle

On June 15, 2011, HP filed a lawsuit in California Superior Court in Santa Clara, claiming that Oracle Corporation had breached an agreement to support the Itanium microprocessor used in HP’s high-end enterprise servers. On June 15, 2011, HP sent a “formal legal demand” letter to Oracle in an attempt to force the world’s No. 3 software maker to reverse its decision to discontinue software development on Intel Itanium microprocessor and build its own servers. HP won the lawsuit in 2012, requiring Oracle to continue to produce software compatible with the Itanium processor. HP was awarded $3 billion in damages against Oracle on June 30, 2016. HP argued Oracle’s canceling support damaged HP Itanium server brand. Oracle has announced it will appeal both the decision and damages.

Takeover of Autonomy

In November 2012, HP recorded a writedown of around $8.8 billion related to its acquisition a year earlier of the UK based Autonomy Corporation PLC. HP accused Autonomy of deliberately inflating the value of the company prior to its takeover. The former management team of Autonomy flatly rejected the charge.

Autonomy specialized in analysis of large scale unstructured “big data”, and by 2010 was the UK’s largest and most successful software business. It maintained an aggressively entrepreneurial marketing approach, and controls described as a “rod of iron”, which was said to include zero tolerance and firing the weakest 5% of its sales force each quarter, while compensating the best sales staff “like rock stars”.

At the time, HP had fired its previous CEO for expenses irregularities a year before, and appointed Léo Apotheker as CEO and President. HP was seen as problematic by the market, with margins falling and having failed to redirect and establish itself in major new markets such as cloud and mobile services. Apotheker’s strategy was to aim at disposing of hardware and moving into the more profitable software services sector.

As part of this strategy, Autonomy was acquired by HP in October 2011. HP paid $10.3 billion for 87.3% of the shares, valuing Autonomy at around $11.7 billion (£7.4 billion) overall, a premium of around 79% over market price. The deal was widely criticized as “absurdly high”, a “botched strategy shift” and a “chaotic” attempt to rapidly reposition HP and enhance earnings,[61][63][64] and had been objected to even by HP’s own CFO. Within a year, Apotheker himself had been fired, major culture clashes became apparent and HP had written off $8.8 billion of Autonomy’s value.

HP claim this resulted from “accounting improprieties, misrepresentations and disclosure failures” by the previous management, who in turn accuse HP of a “textbook example of defensive stalling” to conceal evidence of its own prior knowledge and gross mismanagement and undermining of the company, noting public awareness since 2009 of its financial reporting issues and that even HP’s CFO disagreed with the price paid. External observers generally state that only a small part of the write-off appears to be due to accounting mis-statements, and that HP had overpaid for businesses previously.

The Serious Fraud Office (United Kingdom), and the U.S. Securities and Exchange Commission joined the FBI in investigating the potential anomalies. HP incurred much damage with its stock falling to decades’ low. Three lawsuits were brought by shareholders against HP, for the fall in value of HP shares. In August 2014 a United States district court judge threw out a proposed settlement, which Autonomy’s previous management had argued would be collusive and intended to divert scrutiny of HP’s own responsibility and knowledge, by essentially engaging the plaintiff’s attorneys from the existing cases and redirecting them against the previous Autonomy vendors and management, for a fee of up to $48 million, with plaintiffs agreeing to end any claims against HP’s management and similarly redirect those claims against the previous Autonomy vendors and management. In January 2015 the SFO closed its investigation as the likelihood of a successful prosecution was low. The dispute is still being litigated in the US, and is being investigated by the UK and Ireland Financial Reporting Council. On June 9, 2015, HP agreed to pay $100 million to investors who bought HP shares between August 19, 2011, and November 20, 2012 to settle the suite over Autonomy purchase.


On April 9, 2014, an administrative proceeding before Securities and Exchange Commission was settled by HP consenting to an order acknowledging that HP had violated the Foreign Corrupt Practices Act (FCPA) when HP subsidiaries in Russia, Poland, and Mexico made improper payments to government officials to obtain or retain lucrative public contracts.

The SEC’s order finds that HP’s subsidiary in Russia paid more than $2 million through agents and various shell companies to a Russian government official to retain a multimillion-dollar contract with the federal prosecutor’s office. In Poland, HP’s subsidiary provided gifts and cash bribes worth more than $600,000 to a Polish government official to obtain contracts with the national police agency. And as part of its bid to win a software sale to Mexico’s state-owned petroleum company, HP’s subsidiary in Mexico paid more than $1 million in inflated commissions to a consultant with close ties to company officials, and money was funneled to one of those officials. HP agreed to pay $108 million to settle the SEC charges and a parallel criminal case.